Amaero International Ltd (ASX:3DA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Amaero International Ltd engages in the research, development, manufacture, and sale of laser-based metal additive products in Australia. The company’s loss has recently broadened since it announced a AU$7.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$7.7m, moving it further away from breakeven. As path to profitability is the topic on Amaero International's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to some industry analysts covering Amaero International, breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of AU$3.3m in 2023. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 120% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Amaero International's growth isn’t the focus of this broad overview, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Amaero International currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of Amaero International to cover in one brief article, but the key fundamentals for the company can all be found in one place – Amaero International's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
- Valuation: What is Amaero International 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 Amaero International 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 Amaero International’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.
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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.