Yahoo Movies Analysts Expect Breakeven For BRP Group, Inc. (NASDAQ:BRP) Before Long
We feel now is a pretty good time to analyse BRP Group, Inc.'s (NASDAQ:BRP) business as it appears the company may be on the cusp of a considerable accomplishment. BRP Group, Inc. markets and sells insurance products and services in the United States. The US$2.9b market-cap company posted a loss in its most recent financial year of US$16m and a latest trailing-twelve-month loss of US$18m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is BRP Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for BRP Group
Consensus from 8 of the American Insurance analysts is that BRP Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$22m in 2023. The company is therefore projected to breakeven just over a year from today. 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 134% 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.
Underlying developments driving BRP Group's growth isn’t the focus of this broad overview, but, bear 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.
Before we wrap up, there’s one issue worth mentioning. BRP Group currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in BRP Group's case is 60%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of BRP Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – BRP Group's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Historical Track Record: What has BRP Group'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 BRP 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.
