We feel now is a pretty good time to analyse Intellicheck, Inc.'s (NASDAQ:IDN) business as it appears the company may be on the cusp of a considerable accomplishment. Intellicheck, Inc., a technology company, develops, integrates, and markets threat identification and identity authentication solutions for retail fraud prevention, law enforcement threat identification, and mobile and handheld access control and security systems primarily in the United States. The US$180m market-cap company posted a loss in its most recent financial year of US$2.5m and a latest trailing-twelve-month loss of US$595k shrinking the gap between loss and breakeven. As path to profitability is the topic on Intellicheck'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.
According to the 3 industry analysts covering Intellicheck, the consensus is that breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$4.4m in 2021. The company is therefore projected to breakeven just over a year 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 122%, 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 Intellicheck given that this is a high-level summary, though, keep in mind 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 The company has managed its capital judiciously, with debt making up 3.7% 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.
There are key fundamentals of Intellicheck 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 Intellicheck, take a look at Intellicheck's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
- Valuation: What is Intellicheck 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 Intellicheck is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Intellicheck’s board and the CEO’s background.
- 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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