Yahoo Finance Conifer Holdings, Inc. (NASDAQ:CNFR) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Conifer Holdings, Inc.'s (NASDAQ:CNFR) business as it appears the company may be on the cusp of a considerable accomplishment. Conifer Holdings, Inc., an insurance holding company, offers insurance coverage in specialty commercial and personal product lines. The US$25m market-cap company posted a loss in its most recent financial year of US$7.8m and a latest trailing-twelve-month loss of US$7.5m shrinking the gap between loss and breakeven. As path to profitability is the topic on Conifer Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Conifer Holdings
Consensus from 3 of the American Insurance analysts is that Conifer Holdings is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$1.0m in 2021. Therefore, the company is expected to breakeven just over a year from now. 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 110% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Conifer Holdings' 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 issue worth mentioning. Conifer Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Conifer Holdings' case is 90%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Conifer Holdings 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 Conifer Holdings, take a look at Conifer Holdings' company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Conifer Holdings' 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 Conifer Holdings' 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.
This article by Simply Wall St is general in nature. 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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