Itamar Medical Ltd. (TLV:ITMR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Itamar Medical Ltd. engages in the research, development, marketing, sale, and leasing of non-invasive medical devices for the cardiology market. The ₪898m market-cap company posted a loss in its most recent financial year of US$5.3m and a latest trailing-twelve-month loss of US$9.0m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Itamar Medical's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 7 industry analysts covering Itamar Medical, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$6.7m in 2023. The company is therefore projected to breakeven around 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 56%, which signals high confidence from analysts. 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 Itamar Medical given that this is a high-level summary, though, bear in mind that generally 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 11% 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.
There are too many aspects of Itamar Medical to cover in one brief article, but the key fundamentals for the company can all be found in one place – Itamar Medical's company page on Simply Wall St. We've also put together a list of key factors you should further examine:
- Historical Track Record: What has Itamar Medical'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Itamar Medical's board and the CEO’s background.
- 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. 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.
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