Ikonisys S.A. (EPA:ALIKO): Is Breakeven Near?

Ikonisys S.A. (EPA:ALIKO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Ikonisys S.A., a cell based diagnostics company, engages in the design, manufacturing, marketing, and sale of medical diagnostic products for various cancers in the United States and Europe. The €15m market-cap company posted a loss in its most recent financial year of €2.4m and a latest trailing-twelve-month loss of €2.4m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Ikonisys will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Ikonisys

Expectations from some of the French Medical Equipment analysts is that Ikonisys is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €400k in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 85% year-on-year, on average, 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 Ikonisys' growth isn’t the focus of this broad overview, however, 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 17% 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:

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

1. Valuation: What is Ikonisys 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 Ikonisys 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 Ikonisys’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.