We feel now is a pretty good time to analyse Nano-X Imaging Ltd.'s (NASDAQ:NNOX) business as it appears the company may be on the cusp of a considerable accomplishment. Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The US$425m market-cap company’s loss lessened since it announced a US$61m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$50m, as it approaches breakeven. As path to profitability is the topic on Nano-X Imaging'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.

See our latest analysis for Nano-X Imaging

Consensus from 4 of the American Healthcare analysts is that Nano-X Imaging is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$19m in 2027. So, the company is predicted to breakeven approximately 2 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 60% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Nano-X Imaging's upcoming projects, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 2.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Nano-X Imaging which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Nano-X Imaging, take a look at Nano-X Imaging's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Valuation: What is Nano-X Imaging 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 Nano-X Imaging 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 Nano-X Imaging’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.