INVO Fertility, Inc.'s (NASDAQ:IVF) Shift From Loss To Profit

We feel now is a pretty good time to analyse INVO Fertility, Inc.'s (NASDAQ:IVF) business as it appears the company may be on the cusp of a considerable accomplishment. INVO Fertility, Inc., a healthcare services company, focuses on the fertility marketplace that provides assisted reproductive technology care to patients. With the latest financial year loss of US$7.1m and a trailing-twelve-month loss of US$8.8m, the US$4.3m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on INVO Fertility'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.

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INVO Fertility is bordering on breakeven, according to some American Medical Equipment analysts. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$1.6m in 2028. So, the company is predicted to breakeven approximately 2 years from now. 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 70% is expected, which signals high confidence from analysts. 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 INVO Fertility's upcoming projects, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for INVO Fertility

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 9.9% 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 INVO Fertility to cover in one brief article, but the key fundamentals for the company can all be found in one place – INVO Fertility's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has INVO Fertility'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 INVO Fertility'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.