With the business potentially at an important milestone, we thought we'd take a closer look at EMVision Medical Devices Ltd's (ASX:EMV) future prospects. EMvision Medical Devices Limited, a medical device company, engages in the research, development, and commercialization of imaging and diagnostic technology products. On 30 June 2022, the AU$128m market-cap company posted a loss of AU$6.1m for its most recent financial year. Many investors are wondering about the rate at which EMVision Medical Devices 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.
EMVision Medical Devices is bordering on breakeven, according to some Australian Medical Equipment analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$2.0m in 2023. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow -23% year-on-year, on average,
Underlying developments driving EMVision Medical Devices' growth isn’t the focus of this broad overview, though, take into account that typically a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that EMVision Medical Devices has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of EMVision Medical Devices 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 EMVision Medical Devices, take a look at EMVision Medical Devices' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Historical Track Record: What has EMVision Medical Devices' 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 EMVision Medical Devices' 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.
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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.
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