IQGeo Group plc (LON:IQG) Could Be Less Than A Year Away From Profitability

We feel now is a pretty good time to analyse IQGeo Group plc's (LON:IQG) business as it appears the company may be on the cusp of a considerable accomplishment. IQGeo Group plc develops geospatial software for the telecoms and utility network industries in the United Kingdom, the United States, Canada, Belgium, Germany, Japan, and internationally. The company’s loss has recently broadened since it announced a UK£913k loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£963k, moving it further away from breakeven. As path to profitability is the topic on IQGeo Group'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.

Check out our latest analysis for IQGeo Group

According to the 2 industry analysts covering IQGeo Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of UK£4.4m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 96% is expected, 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 IQGeo Group given that this is a high-level summary, but, bear in mind that typically 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. IQGeo Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is IQGeo Group 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 IQGeo Group 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 IQGeo Group’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.