When Will Cyclopharm Limited (ASX:CYC) Breakeven?

Cyclopharm Limited (ASX:CYC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cyclopharm Limited manufacture and sells medical equipment and radiopharmaceuticals in the Asia Pacific, Europe, Canada, and internationally. On 31 December 2023, the AU$131m market-cap company posted a loss of AU$4.7m for its most recent financial year. Many investors are wondering about the rate at which Cyclopharm will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Cyclopharm

According to some industry analysts covering Cyclopharm, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$5.5m in 2025. The company is therefore projected 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 89% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Cyclopharm's upcoming projects, though, keep in mind that typically 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. Cyclopharm 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Cyclopharm to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cyclopharm's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is Cyclopharm 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 Cyclopharm 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 Cyclopharm’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.