Loss-Making Ikonisys S.A. (EPA:ALIKO) Expected To Breakeven In The Medium-Term

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. On 31 December 2021, the €19m market-cap company posted a loss of €571k for its most recent financial year. The most pressing concern for investors is Ikonisys' 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.

View our latest analysis for Ikonisys

Ikonisys is bordering on breakeven, according to the 2 French Medical Equipment analysts. They expect the company to post a final loss in 2023, before turning a profit of €1.1m in 2024. 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 64% 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.

Underlying developments driving Ikonisys' growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 1.0% 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 key fundamentals of Ikonisys which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Ikonisys, take a look at Ikonisys' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

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.

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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.