With the business potentially at an important milestone, we thought we'd take a closer look at Sanara MedTech Inc.'s (NASDAQ:SMTI) future prospects. Sanara MedTech Inc. develops, markets, and distributes wound and skin care products to physicians, hospitals, clinics, and post-acute care settings in the United States. The company's loss has recently broadened since it announced a US$7.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$8.2m, moving it further away from breakeven. As path to profitability is the topic on Sanara MedTech's investors mind, we've decided to gauge market sentiment. 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 Sanara MedTech

Expectations from some of the American Medical Equipment analysts is that Sanara MedTech is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$23m in 2024. The company is therefore projected to breakeven just over a year from today. 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 225% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Sanara MedTech given that this is a high-level summary, though, take into account that generally 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 The company has managed its capital judiciously, with debt making up 22% 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:

There are key fundamentals of Sanara MedTech 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 Sanara MedTech, take a look at Sanara MedTech's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has Sanara MedTech'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sanara MedTech's board and the CEO's background.
3. 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.