Sarcos Technology and Robotics Corporation (NASDAQ:STRC) Is Expected To Breakeven In The Near Future

With the business potentially at an important milestone, we thought we'd take a closer look at Sarcos Technology and Robotics Corporation's (NASDAQ:STRC) future prospects. Sarcos Corp., a robotics and sensor company, designs, builds, and produces dexterous tele-operated robotic systems. The US$460m market-cap company posted a loss in its most recent financial year of US$82m and a latest trailing-twelve-month loss of US$96m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Sarcos Technology and Robotics' 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 Sarcos Technology and Robotics

Sarcos Technology and Robotics is bordering on breakeven, according to the 3 American Machinery analysts. They expect the company to post a final loss in 2023, before turning a profit of US$2.8m in 2024. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Sarcos Technology and Robotics given that this is a high-level summary, however, bear 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 Sarcos Technology and Robotics has no debt on its balance sheet, which is quite unusual for a cash-burning 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 key fundamentals of Sarcos Technology and Robotics 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 Sarcos Technology and Robotics, take a look at Sarcos Technology and Robotics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Sarcos Technology and Robotics 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 Sarcos Technology and Robotics 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 Sarcos Technology and Robotics’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.