Analysts Expect Breakeven For Imricor Medical Systems, Inc. (ASX:IMR)

Imricor Medical Systems, Inc.'s (ASX:IMR): Imricor Medical Systems, Inc., a medical device company, designs, manufactures, sells, and distributes magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures in the United States and Europe. The AU$174m market-cap company announced a latest loss of -US$13.3m on 31 December 2019 for its most recent financial year result. The most pressing concern for investors is IMR’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for IMR’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Imricor Medical Systems

IMR is bordering on breakeven, according to Medical Equipment analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$8.0m in 2022. Therefore, IMR is expected to breakeven roughly 2 years from now. How fast will IMR have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, IMR may become profitable much later than analysts predict.

Given this is a high-level overview, I won’t go into details of IMR’s upcoming projects, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one aspect worth mentioning. IMR currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. IMR 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:

This article is not intended to be a comprehensive analysis on IMR, so if you are interested in understanding the company at a deeper level, take a look at IMR’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has IMR'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 Imricor Medical Systems’s board and the CEO’s back ground.
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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