Yahoo Finance Tactile Systems Technology, Inc. (NASDAQ:TCMD) On The Verge Of Breaking Even
We feel now is a pretty good time to analyse Tactile Systems Technology, Inc.'s (NASDAQ:TCMD) business as it appears the company may be on the cusp of a considerable accomplishment. Tactile Systems Technology, Inc., a medical technology company, engages in the development and provision of medical devices for chronic diseases in the United States. On 31 December 2022, the US$262m market-cap company posted a loss of US$18m for its most recent financial year. As path to profitability is the topic on Tactile Systems Technology's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Tactile Systems Technology
According to the 3 industry analysts covering Tactile Systems Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$5.6m in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Tactile Systems Technology given that this is a high-level summary, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Tactile Systems Technology is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Tactile Systems Technology's case is 40%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Tactile Systems Technology, so if you are interested in understanding the company at a deeper level, take a look at Tactile Systems Technology's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
Valuation: What is Tactile Systems Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Tactile Systems Technology is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tactile Systems Technology’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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