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. The US$302m market-cap company posted a loss in its most recent financial year of US$31m and a latest trailing-twelve-month loss of US$33m leading to an even wider gap between loss and 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
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According to some industry analysts covering SANUWAVE Health, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$7.2m in 2026. Therefore, the company is expected to breakeven just over a year 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 111%, 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 SANUWAVE Health's growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
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.
This article is not intended to be a comprehensive analysis on SANUWAVE Health, so if you are interested in understanding the company at a deeper level, take a look at SANUWAVE Health's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
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