Yahoo Finance Keypath Education International, Inc.'s (ASX:KED) Profit Outlook
Keypath Education International, Inc. (ASX:KED) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Keypath Education International, Inc. designs, develops, and delivers career-relevant online education solutions in North America, the Asia-Pacific, and internationally. The AU$90m market-cap company announced a latest loss of US$20m on 30 June 2023 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.
See our latest analysis for Keypath Education International
According to the 4 industry analysts covering Keypath Education International, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$4.6m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 68% year-on-year, on average, 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 by and large 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 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:
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 important factors you should look at:
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.
