Stock Analysis

CurveBeam AI Limited (ASX:CVB): Is Breakeven Near?

ASX:CVB
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CurveBeam AI Limited (ASX:CVB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CurveBeam AI Limited provides medical imaging platforms and clinical assessment solutions that focus on the orthopedic market and general bone health screening and diagnostics. With the latest financial year loss of AU$51m and a trailing-twelve-month loss of AU$57m, the AU$67m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on CurveBeam AI'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 CurveBeam AI

CurveBeam AI is bordering on breakeven, according to the 2 Australian Medical Equipment analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$9.9m in 2027. So, the company is predicted to breakeven approximately 3 years from now. 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 79% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
ASX:CVB Earnings Per Share Growth August 20th 2024

We're not going to go through company-specific developments for CurveBeam AI given that this is a high-level summary, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 29% 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 CurveBeam AI, so if you are interested in understanding the company at a deeper level, take a look at CurveBeam AI's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

  1. Historical Track Record: What has CurveBeam AI'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 CurveBeam AI'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.