Opsens Inc. (TSE:OPS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Opsens Inc. develops, manufactures, installs, and sells fiber optic sensors for cardiovascular interventions. With the latest financial year loss of CA$11m and a trailing-twelve-month loss of CA$15m, the CA$208m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Opsens' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Opsens
Opsens is bordering on breakeven, according to the 6 Canadian Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of CA$1.6m in 2025. So, the company is predicted to breakeven approximately 2 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 68%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Opsens given that this is a high-level summary, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 5.6% of equity. This means that it 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:
This article is not intended to be a comprehensive analysis on Opsens, so if you are interested in understanding the company at a deeper level, take a look at Opsens' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
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Valuation: What is Opsens 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 Opsens 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 Opsens’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.