Yahoo Finance Keypath Education International, Inc. (ASX:KED): When Will It Breakeven?
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, the Asia-Pacific, and internationally. On 30 June 2023, the AU$96m market-cap company posted a loss of US$20m for its most recent financial year. The most pressing concern for investors is Keypath Education International'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.
View our latest analysis for Keypath Education International
Consensus from 4 of the Australian Consumer Services analysts is that Keypath Education International is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$3.4m in 2026. Therefore, the company is expected to breakeven roughly 3 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 74%, which signals high confidence from analysts. 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 Keypath Education International's upcoming projects, though, take into account 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 aspect worth mentioning. Keypath Education International 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Keypath Education International 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 Keypath Education International, take a look at Keypath Education International's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:
Valuation: What is Keypath Education International 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 Keypath Education International 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 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.
