CYBERDYNE Inc. (TSE:7779) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse CYBERDYNE Inc.'s (TSE:7779) business as it appears the company may be on the cusp of a considerable accomplishment. CYBERDYNE Inc. researches, develops, produces, sell, leases, and maintains robotic equipment and systems for medical and welfare in Japan, the United States, Europe, the Middle East, Africa, and the Asia Pacific countries. The JP¥35b market-cap company’s loss lessened since it announced a JP¥1.5b loss in the full financial year, compared to the latest trailing-twelve-month loss of JP¥1.2b, as it approaches breakeven. The most pressing concern for investors is CYBERDYNE's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for CYBERDYNE

According to the 4 industry analysts covering CYBERDYNE, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of JP¥156m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 70% 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.

Given this is a high-level overview, we won’t go into details of CYBERDYNE's upcoming projects, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.3% 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:

This article is not intended to be a comprehensive analysis on CYBERDYNE, so if you are interested in understanding the company at a deeper level, take a look at CYBERDYNE's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Valuation: What is CYBERDYNE 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 CYBERDYNE 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 CYBERDYNE’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.