When Will Income Asset Management Group Limited (ASX:IAM) Breakeven?
Income Asset Management Group Limited (ASX:IAM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Income Asset Management Group Limited provides financial product solutions in cash/deposits and fixed income in Australia. The AU$15m market-cap company posted a loss in its most recent financial year of AU$5.5m and a latest trailing-twelve-month loss of AU$3.9m shrinking the gap between loss and breakeven. As path to profitability is the topic on Income Asset Management Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to some industry analysts covering Income Asset Management Group, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$5.1m in 2027. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 178% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Income Asset Management Group's growth isn’t the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
View our latest analysis for Income Asset Management Group
Before we wrap up, there’s one issue worth mentioning. Income Asset Management Group currently has a debt-to-equity ratio of 196%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Income Asset Management Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Income Asset Management Group's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
- Historical Track Record: What has Income Asset Management 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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Income Asset Management Group's board and the CEO’s background.
- 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.