Analysts Expect Breakeven For VerifyMe, Inc. (NASDAQ:VRME) Before Long

We feel now is a pretty good time to analyse VerifyMe, Inc.'s (NASDAQ:VRME) business as it appears the company may be on the cusp of a considerable accomplishment. VerifyMe, Inc. provides technology solutions for brand protection and supply chain functions in the United States. The US$32m market-cap company announced a latest loss of US$5.9m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is VerifyMe's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for VerifyMe

Expectations from some of the American Electronic analysts is that VerifyMe is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$2.2m in 2022. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% 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 VerifyMe's growth isn’t the focus of this broad overview, though, bear in mind that typically 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 0.9% 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 VerifyMe 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 VerifyMe, take a look at VerifyMe's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Valuation: What is VerifyMe 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 VerifyMe 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 VerifyMe’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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