Intelligent Monitoring Group Limited (ASX:IMB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Intelligent Monitoring Group Limited provides security, monitoring, and risk management services for business and individual use in Australia. The AU$179m market-cap company announced a latest loss of AU$1.6m on 30 June 2024 for its most recent financial year result. The most pressing concern for investors is Intelligent Monitoring Group's path to profitability – when will it breakeven? 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 Intelligent Monitoring Group

Expectations from some of the Australian Commercial Services analysts is that Intelligent Monitoring Group is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of AU$9.4m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 88% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Intelligent Monitoring 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.

Before we wrap up, there’s one issue worth mentioning. Intelligent Monitoring Group currently has a debt-to-equity ratio of over 2x. Typically, 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 around investing in the loss-making company.

Next Steps:

There are too many aspects of Intelligent Monitoring Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Intelligent Monitoring Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Valuation: What is Intelligent Monitoring Group 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 Intelligent Monitoring Group 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 Intelligent Monitoring 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.

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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.