Yahoo Finance Creo Medical Group PLC's (LON:CREO) Path To Profitability
Creo Medical Group PLC (LON:CREO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Creo Medical Group PLC, through its subsidiaries, researches, develops, manufactures, and sells medical devices and instruments in the United Kingdom. The UK£116m market-cap company posted a loss in its most recent financial year of UK£27m and a latest trailing-twelve-month loss of UK£25m shrinking the gap between loss and breakeven. The most pressing concern for investors is Creo Medical Group's 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.
Check out our latest analysis for Creo Medical Group
According to the 3 industry analysts covering Creo Medical Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of UK£7.2m in 2026. Therefore, the company is expected to breakeven roughly 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 68% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Creo Medical Group's upcoming projects, however, bear in mind that generally 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. The company has managed its capital prudently, with debt making up 13% 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 Creo Medical Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Creo Medical Group's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Valuation: What is Creo Medical Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Creo Medical Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Creo Medical Group’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.
