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Visioneering Technologies, Inc.'s (ASX:VTI) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Visioneering Technologies, Inc.'s (ASX:VTI) future prospects. Visioneering Technologies, Inc., a medical device company, engages in the design, manufacture, sale, and distribution of contact lenses in North America, Europe, and the Asia-Pacific. The AU$16m market-cap company announced a latest loss of US$2.3m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on Visioneering Technologies' 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.

See our latest analysis for Visioneering Technologies

Expectations from some of the Australian Medical Equipment analysts is that Visioneering Technologies is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$900k in 2024. So, the company is predicted to breakeven approximately 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 25% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Visioneering Technologies given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 27% 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 Visioneering Technologies 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 Visioneering Technologies, take a look at Visioneering Technologies' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

  1. Historical Track Record: What has Visioneering Technologies' 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 Visioneering Technologies' 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.