SANUWAVE Health, Inc. (NASDAQ:SNWV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SANUWAVE Health, Inc. operates as a medical device company in the United States and internationally. With the latest financial year loss of US$31m and a trailing-twelve-month loss of US$7.0m, the US$253m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which SANUWAVE Health will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
SANUWAVE Health is bordering on breakeven, according to the 2 American Medical Equipment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$7.2m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving SANUWAVE Health's growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
See our latest analysis for SANUWAVE Health
One thing we would like to bring into light with SANUWAVE Health 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.
There are key fundamentals of SANUWAVE Health 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 SANUWAVE Health, take a look at SANUWAVE Health's company page on Simply Wall St. We've also put together a list of important factors you should further research:
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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.