With the company potentially at an important milestone, we wanted to take a closer look at Ai-Media Technologies Limited’s (ASX: AIM) future prospects. Ai-Media Technologies Limited offers a range of technology-driven products and services for live and recorded subtitling, transcription and translation in Australia, New Zealand, North America and internationally. The AU$153m market cap company announced a final loss of AU$11m on June 30, 2021 for its most recent full-year result. The biggest concern for investors is Ai-Media Technologies’ path to profitability – when will it break even? Below we provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Ai-Media Technologies
Ai-Media Technologies is bordering on break even, according to 2 Australian Commercial Services analysts. They expect the company to record a final loss in 2023, before posting a profit of AU$5.6 million in 2024. Therefore, the company is expected to break even for approximately 3 years from today. How fast does the company need to grow each year to reach break-even point by 2024? Looking back at analysts’ estimates, they expect the company to grow an average of 103% year-over-year, indicating strong analyst confidence. If this rate proves too aggressive, the company could turn profitable much later than analysts predict.
Since this is a high-level overview, we will not go into the details of Ai-Media Technologies’ upcoming projects. However, keep in mind that a high expected growth rate is generally not uncommon for a company that is currently going through an investment period.
One thing we want to emphasize is that the company has managed its capital prudently, with debt making up 0.3% of equity. This means that it has financed its operations primarily with equity, and its low debt obligation reduces the risk of investing in the loss-making company.
There are important basics of Ai-Media Technologies that are not covered in this article, but we must emphasize again that this is just a basic overview. For a more comprehensive look at Ai-Media Technologies, take a look at the Ai-Media Technologies company page on Simply Wall St. We’ve also compiled a list of key factors you should investigate further:
valuation: What is Ai-Media 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 Ai-Media Technologies is currently being mispriced by the market.
The management team: An experienced management team at the helm increases our confidence in the company – take a look at who sits on Ai-Media Technologies’ board of directors and what the CEO’s background is.
Other High-Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
This Simply Wall St article 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 is not a recommendation to buy or sell stocks and does not take into account your objectives or your financial situation. We strive to provide you with long-term focused analysis powered by fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or quality material. Simply Wall St has no position in said stocks.
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