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Micro-X Limited (ASX:MX1) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Micro-X Limited designs, develops, manufactures, and commercializes medical and security imaging products using cold cathode X-ray technology for the healthcare and security markets in Australia. The AU$35m market-cap company posted a loss in its most recent financial year of AU$11m and a latest trailing-twelve-month loss of AU$15m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Micro-X'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 Micro-X

Micro-X is bordering on breakeven, according to some Australian Medical Equipment analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$5.1m in 2027. Therefore, the company is expected to breakeven roughly 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 71%, 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 Micro-X given that this is a high-level summary, 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’d like to point out is that Micro-X 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Micro-X 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 Micro-X, take a look at Micro-X's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Historical Track Record: What has Micro-X'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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Micro-X's 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.