When Will Nanalysis Scientific Corp. (CVE:NSCI) Breakeven?

Nanalysis Scientific Corp. (CVE:NSCI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nanalysis Scientific Corp. develops, manufactures, and sells magnetic resonance technology products in Canada, the United States, Canada, Europe, Asia, and internationally. The CA$37m market-cap company posted a loss in its most recent financial year of CA$16m and a latest trailing-twelve-month loss of CA$8.3m shrinking the gap between loss and breakeven. The most pressing concern for investors is Nanalysis Scientific's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Nanalysis Scientific

Nanalysis Scientific is bordering on breakeven, according to some Canadian Medical Equipment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$5.0m in 2026. Therefore, the company is expected 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 69% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Nanalysis Scientific's growth isn’t the focus of this broad overview, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Nanalysis Scientific is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Nanalysis Scientific's case is 68%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Nanalysis Scientific to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nanalysis Scientific's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Historical Track Record: What has Nanalysis Scientific'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 Nanalysis Scientific'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.