Market Sentiment Around Loss-Making IceCure Medical Ltd (NASDAQ:ICCM)

We feel now is a pretty good time to analyse IceCure Medical Ltd's (NASDAQ:ICCM) business as it appears the company may be on the cusp of a considerable accomplishment. IceCure Medical Ltd, a commercial stage medical device company, engages in the research, development, and marketing of cryoablation systems, disposables, and technologies for treating tumors. The US$30m market-cap company posted a loss in its most recent financial year of US$15m and a latest trailing-twelve-month loss of US$14m shrinking the gap between loss and breakeven. The most pressing concern for investors is IceCure 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.

View our latest analysis for IceCure Medical

IceCure Medical is bordering on breakeven, according to the 3 American Medical Equipment analysts. They expect the company to post a final loss in 2025, before turning a profit of US$19k in 2026. So, the company is predicted to breakeven approximately 2 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 61%, which is rather optimistic! 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 IceCure Medical given that this is a high-level summary, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that IceCure Medical has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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 IceCure Medical 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 IceCure Medical, take a look at IceCure Medical's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Valuation: What is IceCure Medical 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 IceCure Medical 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 IceCure Medical’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.