Abingdon Health Plc (LON:ABDX) is probably close to big things for its business, so we’d like to shed some light on this company. Abingdon Health Plc develops, manufactures and markets diagnostic equipment in the UK, US, Canada, Europe and internationally. As of June 30, 2024, the company, which has a market capitalization of GBP 34 million, had posted a loss of GBP 1.3 million in its most recent financial year. Path to profitability is a key theme for Abingdon Health investors, so we decided to gauge market sentiment. This article looks at the company’s growth expectations and when analysts expect it to become profitable.
See our latest analysis for Health in Abingdon.
Some industry analysts covering Abingdon Health say it’s close to breaking even. They expect the company to post a final loss in 2025 and a profit of GBP 136,000 in 2026. Therefore, the company is expected to break even about two years from now. We calculated the rate at which the company would have to grow year over year to achieve this breakeven point. We found that the average annual growth rate is expected to be 89%, indicating high confidence from analysts. If this rate proves too strong, the company could realize profits much later than analysts expected.
Growth rate of earnings per share
As this is a high-level overview, we won’t discuss company-specific developments for Abingdon Health, but consider that high growth rates are generally not unusual, especially when a company is in good times. Investment period.
Before wrapping up, there is one aspect worth mentioning. The company manages its capital wisely, with debt accounting for 32% of equity. This means that the company primarily funds its operations with equity and has less debt, reducing the risks associated with investing in loss-making companies.
Next steps:
There are important fundamentals of Abingdon Health that we haven’t covered in this article, but it’s worth stressing again that this is just a basic overview. For a more comprehensive look at Abingdon Health, please visit the Abingdon Health company page on Simply Wall St. We have also compiled a list of important factors that should be further investigated.
Past Performance: How has Abingdon Health performed in the past? Dive deeper into our past performance analysis and check out our free visual representation of the analysis for greater clarity.
Management Team: Having an experienced management team at the helm increases our confidence in your business. View the biographies of Abingdon Health’s board members and CEO.
Other stocks that perform well: Are there other stocks with proven track records that offer a better outlook? See a free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
