Yahoo Movies Smart Share Global Limited (NASDAQ:EM): When Will It Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Smart Share Global Limited's (NASDAQ:EM) future prospects. Smart Share Global Limited, a consumer tech company, provides mobile device charging services in the People's Republic of China. The US$331m market-cap company posted a loss in its most recent financial year of CN¥5.0b and a latest trailing-twelve-month loss of CN¥429m shrinking the gap between loss and breakeven. As path to profitability is the topic on Smart Share Global's investors mind, we've decided to gauge market sentiment. 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 Smart Share Global
Consensus from 3 of the American Specialty Retail analysts is that Smart Share Global is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of CN¥73m in 2023. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 106% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Smart Share Global given that this is a high-level summary, though, bear in mind that typically 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 The company has managed its capital prudently, with debt making up 4.9% 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 Smart Share Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – Smart Share Global's company page on Simply Wall St. We've also put together a list of essential factors you should further research:
Valuation: What is Smart Share Global 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 Smart Share Global 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 Smart Share Global’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.
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.
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