Yahoo Finance When Can We Expect A Profit From Janison Education Group Limited (ASX:JAN)?
We feel now is a pretty good time to analyse Janison Education Group Limited's (ASX:JAN) business as it appears the company may be on the cusp of a considerable accomplishment. Janison Education Group Limited engages in licensing, hosting, and supporting online student assessment and e-learning software solutions in Australia and internationally. On 30 June 2021, the AU$309m market-cap company posted a loss of AU$3.2m for its most recent financial year. Many investors are wondering about the rate at which Janison Education Group will turn a profit, with the big question being “when will the company 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 Janison Education Group
Consensus from 3 of the Australian Software analysts is that Janison Education Group is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of AU$1.4m in 2023. The company is therefore projected to breakeven around 2 years from today. 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 71%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Janison Education Group's growth isn’t the focus of this broad overview, however, take into account that typically 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 aspect worth mentioning. Janison Education Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Janison Education Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Janison Education Group, take a look at Janison Education Group's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
Valuation: What is Janison Education 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 Janison Education Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Janison Education 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.
