Breakeven On The Horizon For Precipio, Inc. (NASDAQ:PRPO)

We feel now is a pretty good time to analyse Precipio, Inc.'s (NASDAQ:PRPO) business as it appears the company may be on the cusp of a considerable accomplishment. Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. The US$11m market-cap company posted a loss in its most recent financial year of US$12m and a latest trailing-twelve-month loss of US$9.1m shrinking the gap between loss and breakeven. As path to profitability is the topic on Precipio'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 Precipio

According to some industry analysts covering Precipio, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$3.1m in 2024. The company is therefore projected to breakeven just over a year 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 149% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Precipio's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 3.4% 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:

This article is not intended to be a comprehensive analysis on Precipio, so if you are interested in understanding the company at a deeper level, take a look at Precipio's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Historical Track Record: What has Precipio'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 Precipio'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.