With the business potentially at an important milestone, we thought we'd take a closer look at ikeGPS Group Limited's (NZSE:IKE) future prospects. ikeGPS Group Limited, together with its subsidiaries, engages in the design, sale, and delivery of a solution for the collection, analysis, and management of distribution assets for electric utilities and communications companies in the United States. The NZ$92m market-cap company announced a latest loss of NZ$15m on 31 March 2024 for its most recent financial year result. Many investors are wondering about the rate at which ikeGPS Group 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.

See our latest analysis for ikeGPS Group

Consensus from 3 of the New Zealander Electronic analysts is that ikeGPS Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of NZ$2.2m in 2027. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 76% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of ikeGPS Group's upcoming projects, though, take into account 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 ikeGPS Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on ikeGPS Group, so if you are interested in understanding the company at a deeper level, take a look at ikeGPS Group's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is ikeGPS Group 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 ikeGPS Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ikeGPS Group’s board and the CEO’s background.
3. 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.

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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.