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With the business potentially at an important milestone, we thought we'd take a closer look at Income Asset Management Group Limited's (ASX:IAM) future prospects. Income Asset Management Group Limited engages in the provision of financial product solutions in cash/deposits and fixed income in Australia. On 30 June 2024, the AU$26m market-cap company posted a loss of AU$14m for its most recent financial year. As path to profitability is the topic on Income Asset Management Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Income Asset Management Group
Expectations from some of the Australian Diversified Financial analysts is that Income Asset Management Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$3.5m 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 102% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Income Asset Management Group's growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Income Asset Management Group is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of Income Asset Management Group 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 Income Asset Management Group, take a look at Income Asset Management Group's company page on Simply Wall St. We've also put together a list of key factors you should further research:
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Historical Track Record: What has Income Asset Management Group'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 Income Asset Management Group'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.