Yahoo Finance Keypath Education International, Inc. (ASX:KED) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Keypath Education International, Inc.'s (ASX:KED) future prospects. Keypath Education International, Inc. designs, develops, and delivers career-relevant online education solutions in North America, Australia, Malaysia, the United Kingdom, and internationally. The AU$529m market-cap company announced a latest loss of US$79m on 30 June 2021 for its most recent financial year result. Many investors are wondering about the rate at which Keypath Education International will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Keypath Education International
Expectations from some of the Australian Consumer Services analysts is that Keypath Education International is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$5.8m in 2024. So, the company is predicted to breakeven approximately 3 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 102%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Keypath Education International's growth isn’t the focus of this broad overview, though, keep 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.
One thing we’d like to point out is that Keypath Education International has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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:
This article is not intended to be a comprehensive analysis on Keypath Education International, so if you are interested in understanding the company at a deeper level, take a look at Keypath Education International's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Historical Track Record: What has Keypath Education International'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Keypath Education International'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.
