Yahoo Movies When Will Intevac, Inc. (NASDAQ:IVAC) Become Profitable?
We feel now is a pretty good time to analyse Intevac, Inc.'s (NASDAQ:IVAC) business as it appears the company may be on the cusp of a considerable accomplishment. Intevac, Inc., together with its subsidiaries, designs and develops thin-film processing systems primarily in the United States and Asia. The US$174m market-cap company announced a latest loss of US$17m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Intevac will turn a profit, with the big question being “when will the company 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 Intevac
Intevac is bordering on breakeven, according to the 2 American Tech analysts. They expect the company to post a final loss in 2023, before turning a profit of US$11m in 2024. 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 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, 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 Intevac given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Intevac has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Intevac to cover in one brief article, but the key fundamentals for the company can all be found in one place – Intevac's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Valuation: What is Intevac 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 Intevac 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 Intevac’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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
