We Might See A Profit From Mirion Technologies, Inc. (NYSE:MIR) Soon

We feel now is a pretty good time to analyse Mirion Technologies, Inc.'s (NYSE:MIR) business as it appears the company may be on the cusp of a considerable accomplishment. Mirion Technologies, Inc. provides radiation detection, measurement, analysis, and monitoring products and services in the United States, Canada, the United Kingdom, France, Germany, Finland, China, Belgium, Netherlands, Estonia, South Korea, and Japan. On 31 December 2022, the US$1.6b market-cap company posted a loss of US$277m for its most recent financial year. The most pressing concern for investors is Mirion Technologies' 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.

See our latest analysis for Mirion Technologies

Consensus from 3 of the American Electronic analysts is that Mirion Technologies is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$61m in 2023. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 88% is expected, which is extremely buoyant. 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 Mirion Technologies given that this is a high-level summary, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Mirion Technologies currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Mirion Technologies' case is 55%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Mirion Technologies 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 Mirion Technologies, take a look at Mirion Technologies' company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Valuation: What is Mirion Technologies 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 Mirion Technologies 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 Mirion Technologies’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.

What are the risks and opportunities for Mirion Technologies?

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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.