Income Asset Management Group Limited's (ASX:IAM) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Income Asset Management Group Limited's (ASX:IAM) future prospects. Income Asset Management Group Limited engages in the provision of financial product solutions in cash/deposits and fixed income in Australia. The AU$28m market-cap company announced a latest loss of AU$14m on 30 June 2024 for its most recent financial year result. As path to profitability is the topic on Income Asset Management Group'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.

Check out our latest analysis for Income Asset Management Group

Income Asset Management Group is bordering on breakeven, according to some Australian Diversified Financial analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$3.5m in 2026. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 102% year-on-year, on average, which is rather optimistic! 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 Income Asset Management Group given that this is a high-level summary, however, keep 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 Income Asset Management Group is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Income Asset Management Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Income Asset Management Group, take a look at Income Asset Management Group's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has Income Asset Management Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Income Asset Management Group'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.