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

Income Asset Management Group Limited (ASX:IAM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Income Asset Management Group Limited engages in the provision of financial product solutions in cash/deposits and fixed income in Australia. The AU$20m market-cap company posted a loss in its most recent financial year of AU$14m and a latest trailing-twelve-month loss of AU$12m shrinking the gap between loss and breakeven. The most pressing concern for investors is Income Asset Management Group's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Expectations from some of the Australian Diversified Financial analysts is that Income Asset Management Group is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of AU$4.0m in 2026. The company is therefore projected to breakeven just over a year from now. 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 115% year-on-year, on average, which is extremely buoyant. 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, 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.

Check out our latest analysis for Income Asset Management Group

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Income Asset Management Group, so if you are interested in understanding the company at a deeper level, take a look at Income Asset Management Group's company page on Simply Wall St. We've also compiled 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.