CuriosityStream Inc. (NASDAQ:CURI): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at CuriosityStream Inc.'s (NASDAQ:CURI) future prospects. CuriosityStream Inc. operates as a media and entertainment company. With the latest financial year loss of US$58m and a trailing-twelve-month loss of US$55m, the US$703m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which CuriosityStream 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 CuriosityStream

CuriosityStream is bordering on breakeven, according to the 4 American Entertainment analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$23m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. 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 69%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of CuriosityStream's upcoming projects, though, bear 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 2.3% 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 CuriosityStream to cover in one brief article, but the key fundamentals for the company can all be found in one place – CuriosityStream's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Valuation: What is CuriosityStream 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 CuriosityStream 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 CuriosityStream’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.

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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