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Family Zone Cyber Safety Limited (ASX:FZO): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Family Zone Cyber Safety Limited's (ASX:FZO) future prospects. Family Zone Cyber Safety Limited markets, distributes, and sells cyber safety products and services in Australia, New Zealand, and the United States. The AU$321m market-cap company announced a latest loss of AU$22m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Family Zone Cyber Safety'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.

View our latest analysis for Family Zone Cyber Safety

According to some industry analysts covering Family Zone Cyber Safety, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$4.2m in 2024. Therefore, the company is expected to breakeven roughly 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 64% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Family Zone Cyber Safety's upcoming projects, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 1.3% 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 Family Zone Cyber Safety to cover in one brief article, but the key fundamentals for the company can all be found in one place – Family Zone Cyber Safety's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

  1. Valuation: What is Family Zone Cyber Safety 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 Family Zone Cyber Safety 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 Family Zone Cyber Safety’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.