We Might See A Profit From Izotropic Corporation (CSE:IZO) Soon

We feel now is a pretty good time to analyse Izotropic Corporation's (CSE:IZO) business as it appears the company may be on the cusp of a considerable accomplishment. Izotropic Corporation, a research and development company, develops diagnostic products for detecting breast cancers. The CA$23m market-cap company posted a loss in its most recent financial year of CA$3.1m and a latest trailing-twelve-month loss of CA$2.3m shrinking the gap between loss and breakeven. As path to profitability is the topic on Izotropic's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering Izotropic, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CA$3.5m in 2026. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 94%, which is rather optimistic! 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 Izotropic given that this is a high-level summary, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Izotropic

One thing we would like to bring into light with Izotropic is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Izotropic to cover in one brief article, but the key fundamentals for the company can all be found in one place – Izotropic's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

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