Breakeven On The Horizon For Angi Inc. (NASDAQ:ANGI)

Angi Inc. (NASDAQ:ANGI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Angi Inc. connects home service professionals with consumers in the United States and internationally. On 31 December 2023, the US$1.0b market-cap company posted a loss of US$31m for its most recent financial year. Many investors are wondering about the rate at which Angi will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Angi

Angi is bordering on breakeven, according to the 8 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$30m in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Angi's upcoming projects, though, keep in mind that typically 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 issue worth mentioning. Angi currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Angi's case is 47%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Angi to cover in one brief article, but the key fundamentals for the company can all be found in one place – Angi's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Angi 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 Angi is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Angi’s board and the CEO’s background.

3. 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.