Yahoo Finance When Will Cornerstone FS plc (LON:CSFS) Become Profitable?
We feel now is a pretty good time to analyse Cornerstone FS plc's (LON:CSFS) business as it appears the company may be on the cusp of a considerable accomplishment. Cornerstone FS plc provides international payment, currency risk management, and electronic account services using its proprietary cloud-based multicurrency payments platform. The UK£3.9m market-cap company announced a latest loss of UK£5.6m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Cornerstone FS 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.
Check out our latest analysis for Cornerstone FS
According to the 2 industry analysts covering Cornerstone FS, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of UKÂŁ381k in 2024. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 134%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Cornerstone FS given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Cornerstone FS is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Cornerstone FS to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cornerstone FS' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Historical Track Record: What has Cornerstone FS' 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 Cornerstone FS' 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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