Yahoo Finance When Will Precipio, Inc. (NASDAQ:PRPO) Breakeven?
Precipio, Inc. (NASDAQ:PRPO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. With the latest financial year loss of US$12m and a trailing-twelve-month loss of US$9.1m, the US$11m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Precipio's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Precipio
Expectations from some of the American Healthcare analysts is that Precipio is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$3.1m in 2024. So, the company is predicted 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 149% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Precipio's growth isn’t the focus of this broad overview, but, 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. The company has managed its capital judiciously, with debt making up 3.4% 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 Precipio 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 Precipio, take a look at Precipio's company page on Simply Wall St. We've also put together a list of key factors you should look at:
Historical Track Record: What has Precipio'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 Precipio'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.
