Breakeven On The Horizon For Audeara Limited (ASX:AUA)
With the business potentially at an important milestone, we thought we'd take a closer look at Audeara Limited's (ASX:AUA) future prospects. Audeara Limited, a hearing health technology company, engages in the development and sale of personalized listening products in Australia and North America. The AU$11m market-cap company announced a latest loss of AU$3.0m on 30 June 2022 for its most recent financial year result. As path to profitability is the topic on Audeara'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.
Check out our latest analysis for Audeara
According to some industry analysts covering Audeara, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$1.6m in 2024. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Audeara's growth isn’t the focus of this broad overview, though, keep 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 1.7% 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 too many aspects of Audeara to cover in one brief article, but the key fundamentals for the company can all be found in one place – Audeara's company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
Historical Track Record: What has Audeara'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Audeara'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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