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We feel now is a pretty good time to analyse Mirion Technologies, Inc.'s (NYSE:MIR) business as it appears the company may be on the cusp of a considerable accomplishment. Mirion Technologies, Inc. provides radiation detection, measurement, analysis, and monitoring products and services in North America, Europe, and the Asia Pacific. On 31 December 2024, the US$2.9b market-cap company posted a loss of US$36m for its most recent financial year. Many investors are wondering about the rate at which Mirion Technologies will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Mirion Technologies
Consensus from 5 of the American Electronic analysts is that Mirion Technologies is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$12m in 2026. So, the company is predicted to breakeven just over a year from today. 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 117%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Mirion Technologies' upcoming projects, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Mirion Technologies currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Mirion Technologies' case is 44%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Mirion Technologies, so if you are interested in understanding the company at a deeper level, take a look at Mirion Technologies' company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:
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Valuation: What is Mirion Technologies 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 Mirion Technologies 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 Mirion Technologies’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.