Nanoveu Limited (ASX:NVU): When Will It Breakeven?

Nanoveu Limited (ASX:NVU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nanoveu Limited, a technology company, develops and commercializes nanoimprint science applications in the Americas and internationally. On 31 December 2020, the AU$9.4m market-cap company posted a loss of AU$1.8m for its most recent financial year. The most pressing concern for investors is Nanoveu's 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.

Check out our latest analysis for Nanoveu

Nanoveu is bordering on breakeven, according to some Australian Electronic analysts. They expect the company to post a final loss in 2022, before turning a profit of AU$400k 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 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 Nanoveu's upcoming projects, but, bear in mind that generally 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. The company has managed its capital prudently, with debt making up -1.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Nanoveu 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 Nanoveu 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 Nanoveu’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. 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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