We feel now is a pretty good time to analyse Imricor Medical Systems, Inc.'s (ASX:IMR) business as it appears the company may be on the cusp of a considerable accomplishment. Imricor Medical Systems, Inc., a medical device company, designs, manufactures, sells, and distributes magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures in the United States and Europe. On 31 December 2020, the AU$279m market-cap company posted a loss of US$12m for its most recent financial year. As path to profitability is the topic on Imricor Medical Systems' 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.

See our latest analysis for Imricor Medical Systems

Imricor Medical Systems 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 US$11m in 2023. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% 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. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Imricor Medical Systems' upcoming projects, though, keep in mind that by and large 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. Imricor Medical Systems currently has no debt on its balance sheet, which is rare for a loss-making 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:

This article is not intended to be a comprehensive analysis on Imricor Medical Systems, so if you are interested in understanding the company at a deeper level, take a look at Imricor Medical Systems' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

Historical Track Record: What has Imricor Medical Systems' 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 Imricor Medical Systems' 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.

This article by Simply Wall St is general in nature. 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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