Nano-X Imaging Ltd. (NASDAQ:NNOX): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Nano-X Imaging Ltd.'s (NASDAQ:NNOX) future prospects. Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. With the latest financial year loss of US$61m and a trailing-twelve-month loss of US$50m, the US$482m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Nano-X Imaging will turn a profit, with the big question being “when will the company 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 Nano-X Imaging

Consensus from 4 of the American Healthcare analysts is that Nano-X Imaging is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$19m in 2027. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 60% is expected, which signals high confidence from analysts. 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 Nano-X Imaging given that this is a high-level summary, however, keep in mind that generally 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. The company has managed its capital judiciously, with debt making up 2.1% 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:

There are key fundamentals of Nano-X Imaging 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 Nano-X Imaging, take a look at Nano-X Imaging's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Valuation: What is Nano-X Imaging 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 Nano-X Imaging 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 Nano-X Imaging’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.