Mach7 Technologies Limited (ASX:M7T): Are Analysts Optimistic?

Mach7 Technologies Limited (ASX:M7T) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mach7 Technologies Limited provides enterprise imaging data sharing, storage, and interoperability for healthcare enterprises in North America, the Asia Pacific, the Middle East, Europe and internationally. The AU$171m market-cap company announced a latest loss of AU$1.0m on 30 June 2023 for its most recent financial year result. The most pressing concern for investors is Mach7 Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Mach7 Technologies

Consensus from 5 of the Australian Healthcare Services analysts is that Mach7 Technologies is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$1.5m in 2025. So, the company is predicted to breakeven just over a year 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 54% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Mach7 Technologies given that this is a high-level summary, but, take into account that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. Mach7 Technologies currently has no debt on its balance sheet, which is rare for a loss-making healthcare tech 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 Mach7 Technologies, so if you are interested in understanding the company at a deeper level, take a look at Mach7 Technologies' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Valuation: What is Mach7 Technologies 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 Mach7 Technologies 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 Mach7 Technologies’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.