We Might See A Profit From CYBERDYNE Inc. (TSE:7779) Soon

With the business potentially at an important milestone, we thought we'd take a closer look at CYBERDYNE Inc.'s (TSE:7779) future prospects. CYBERDYNE Inc. researches, develops, produces, sell, leases, and maintains robotic equipment and systems for medical and welfare in Japan, the United States, Europe, the Middle East, Africa, and the Asia Pacific countries. With the latest financial year loss of JP¥577m and a trailing-twelve-month loss of JP¥202m, the JP¥39b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is CYBERDYNE's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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CYBERDYNE is bordering on breakeven, according to the 4 Japanese Medical Equipment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of JP¥183m in 2026. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% year-on-year, on average, which is extremely buoyant. 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 CYBERDYNE given that this is a high-level summary, though, 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.

See our latest analysis for CYBERDYNE

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 0.09% 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 too many aspects of CYBERDYNE to cover in one brief article, but the key fundamentals for the company can all be found in one place – CYBERDYNE's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is CYBERDYNE 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 CYBERDYNE 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 CYBERDYNE’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.