When Will Imricor Medical Systems, Inc. (ASX:IMR) Turn A Profit?

We feel now is a pretty good time to analyse Imricor Medical Systems, Inc.'s (ASX:IMR) business as it appears the company may be on the cusp of a considerable accomplishment. 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$275m market-cap company announced a latest loss of US$12m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is Imricor Medical Systems' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Imricor Medical Systems

According to some industry analysts covering Imricor Medical Systems, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$9.0m in 2023. So, the company is predicted to breakeven approximately 2 years 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 69% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Imricor Medical Systems' growth isn’t the focus of this broad overview, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Imricor Medical Systems currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Imricor Medical Systems, so if you are interested in understanding the company at a deeper level, take a look at Imricor Medical Systems' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Historical Track Record: What has Imricor Medical Systems' 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' 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. 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.
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