Nano-X Imaging Ltd.'s (NASDAQ:NNOX) Profit Outlook

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., a development-stage company, develops, produces, and commercializes digital X-ray source technology for the medical imaging industry worldwide. The company’s loss has recently broadened since it announced a US$44m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$59m, moving it further away from breakeven. As path to profitability is the topic on Nano-X Imaging's investors mind, we've decided to gauge market sentiment. 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

Nano-X Imaging is bordering on breakeven, according to the 3 American Medical Equipment analysts. They expect the company to post a final loss in 2023, before turning a profit of US$126m in 2024. So, the company is predicted to breakeven approximately 2 years from today. 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 68% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Nano-X Imaging's growth isn’t the focus of this broad overview, though, keep in mind that by and large 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 1.4% 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 put together a list of essential aspects you should further examine:

1. Historical Track Record: What has Nano-X Imaging'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.
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.