Duos Technologies Group, Inc. (NASDAQ:DUOT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. With the latest financial year loss of US$11m and a trailing-twelve-month loss of US$11m, the US$52m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Duos Technologies Group's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 2 industry analysts covering Duos Technologies Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$2.9m in 2026. Therefore, the company is expected to breakeven just over a year from today. 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 90%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Duos Technologies Group given that this is a high-level summary, though, 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.

View our latest analysis for Duos Technologies Group

One thing we would like to bring into light with Duos Technologies Group is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Duos Technologies Group's case is 71%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Duos Technologies Group, so if you are interested in understanding the company at a deeper level, take a look at Duos Technologies Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Historical Track Record: What has Duos Technologies Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Duos Technologies 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.