When Can We Expect A Profit From Amaero International Ltd (ASX:3DA)?

We feel now is a pretty good time to analyse Amaero International Ltd's (ASX:3DA) business as it appears the company may be on the cusp of a considerable accomplishment. Amaero International Ltd engages in the research, development, manufacture, and sale of refractory metals and specialty alloy powders in the United States. The AU$237m market-cap company announced a latest loss of AU$18m on 30 June 2024 for its most recent financial year result. Many investors are wondering about the rate at which Amaero International will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Amaero International

Consensus from 2 of the Australian Machinery analysts is that Amaero International is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$11m in 2027. So, the company is predicted to breakeven approximately 3 years 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 59% 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, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Amaero International currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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.

Next Steps:

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 pertinent factors you should further research:

1. 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.
2. 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.
3. 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.