When Will ImpediMed Limited (ASX:IPD) Breakeven?

We feel now is a pretty good time to analyse ImpediMed Limited's (ASX:IPD) business as it appears the company may be on the cusp of a considerable accomplishment. ImpediMed Limited, a medical technology company, develops, manufactures, and sells bioimpedance spectroscopy (BIS) devices and software services in Australia, North America, and internationally. The AU$323m market-cap company announced a latest loss of AU$21m on 30 June 2023 for its most recent financial year result. Many investors are wondering about the rate at which ImpediMed will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for ImpediMed

Consensus from 4 of the Australian Medical Equipment analysts is that ImpediMed is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of AU$10m in 2026. Therefore, the company is expected to breakeven roughly 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 77%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving ImpediMed's growth isn’t the focus of this broad overview, but, keep in mind that by and large 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 ImpediMed 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 key fundamentals of ImpediMed which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at ImpediMed, take a look at ImpediMed's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Historical Track Record: What has ImpediMed'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 ImpediMed'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.