Yahoo Movies Loss-Making Visioneering Technologies, Inc. (ASX:VTI) Expected To Breakeven In The Medium-Term
With the business potentially at an important milestone, we thought we'd take a closer look at Visioneering Technologies, Inc.'s (ASX:VTI) future prospects. Visioneering Technologies, Inc., a medical device company, engages in the design, manufacture, sale, and distribution of contact lenses in North America, Europe, and the Asia-Pacific. On 31 December 2021, the AU$7.8m market-cap company posted a loss of US$2.3m for its most recent financial year. The most pressing concern for investors is Visioneering Technologies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Visioneering Technologies
According to some industry analysts covering Visioneering Technologies, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$900k in 2024. The company is therefore projected to breakeven around 2 years 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 25% year-on-year, on average, 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 Visioneering Technologies given that this is a high-level summary, however, 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 prudently, with debt making up 27% 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:
This article is not intended to be a comprehensive analysis on Visioneering Technologies, so if you are interested in understanding the company at a deeper level, take a look at Visioneering Technologies' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
Historical Track Record: What has Visioneering Technologies' 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 Visioneering Technologies' 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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