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$194m 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? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Intelligent Monitoring Group

Consensus from 2 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$14m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 88%, which is extremely buoyant. 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 Intelligent Monitoring Group's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Intelligent Monitoring Group currently has a debt-to-equity ratio of over 2x. 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:

This article is not intended to be a comprehensive analysis on Intelligent Monitoring Group, so if you are interested in understanding the company at a deeper level, take a look at Intelligent Monitoring Group's company page on Simply Wall St. We've also put together a list of essential aspects 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.

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.