G Medical Innovations Holdings Limited’s (ASX:GMV): G Medical Innovations Holdings Limited develops mobile technologies to monitor, manage, and enhance clinical and personal health outcomes. The AU$101.90M market-cap company announced a latest loss of -US$27.06M on 31 December 2017 for its most recent financial year result. The most pressing concern for investors is GMV’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for GMV, its year of breakeven and its implied growth rate.
View our latest analysis for G Medical Innovations Holdings
GMV is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$500.00K in 2019. So, GMV is predicted to breakeven approximately a few months from now. How fast will GMV have to grow each year in order to reach the breakeven point by 2019? Working backwards from analyst estimates, it turns out that they expect the company to grow 106.45% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving GMV’s growth isn’t the focus of this broad overview, but, keep in mind that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. GMV has managed its capital prudently, with debt making up 36.09% of equity. This means that GMV 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 GMV which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at GMV, take a look at GMV’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:
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Historical Track Record: What has GMV’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.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on G Medical Innovations Holdings’s board and the CEO’s back ground.
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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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.