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Intellicheck, Inc. (NASDAQ:IDN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Intellicheck, Inc., a technology company, provides on-demand digital identity validation solutions for KYC, fraud, and age verification needs in North America. The US$54m market-cap company posted a loss in its most recent financial year of US$2.0m and a latest trailing-twelve-month loss of US$422k shrinking the gap between loss and breakeven. The most pressing concern for investors is Intellicheck's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 4 industry analysts covering Intellicheck, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$404k in 2026. Therefore, the company is expected to breakeven just over a year 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 60% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Intellicheck given that this is a high-level summary, though, 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.
View our latest analysis for Intellicheck
Before we wrap up, there’s one aspect worth mentioning. Intellicheck currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Intellicheck to cover in one brief article, but the key fundamentals for the company can all be found in one place – Intellicheck's company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
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Valuation: What is Intellicheck 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 Intellicheck is currently mispriced by the market.
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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 Intellicheck’s board and the CEO’s background.
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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.
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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.