Breakeven Is Near for Natus Medical Incorporated (NASDAQ:NTUS)

We feel now is a pretty good time to analyse Natus Medical Incorporated's (NASDAQ:NTUS) business as it appears the company may be on the cusp of a considerable accomplishment. Natus Medical Incorporated provides medical device solutions focusing on the diagnosis and treatment of patients with central nervous and sensory system disorders worldwide. The US$895m market-cap company announced a latest loss of US$17m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Natus Medical's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Natus Medical

According to some industry analysts covering Natus Medical, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$23m in 2021. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 103% year-on-year, on average, 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 Natus Medical's growth isn’t the focus of this broad overview, however, bear 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 judiciously, with debt making up 14% 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 Natus 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 Natus Medical, take a look at Natus Medical's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Natus 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 Natus 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 Natus 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. 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.
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