With the business potentially at an important milestone, we thought we'd take a closer look at Nano-X Imaging Ltd.'s (NASDAQ:NNOX) future prospects. Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The US$561m market-cap company announced a latest loss of US$61m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Nano-X Imaging 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.
According to the 2 industry analysts covering Nano-X Imaging, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$104m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% 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.
Given this is a high-level overview, we won't go into details of Nano-X Imaging's upcoming projects, but, take into account that typically 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 1.8% 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 too many aspects of Nano-X Imaging to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nano-X Imaging's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
- Historical Track Record: What has Nano-X Imaging'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nano-X Imaging'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.
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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.