Yahoo Finance CyanConnode Holdings plc (LON:CYAN): Are Analysts Optimistic?
CyanConnode Holdings plc (LON:CYAN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CyanConnode Holdings plc engages in the design, development, and sale of narrowband radio frequency (RF) mesh and cellular networks that enable Omni Internet of Things (IoT) communications in the United Kingdom, India, Thailand, rest of Europe, the United Arab Emirates, and internationally. The UK£24m market-cap company’s loss lessened since it announced a UK£2.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£2.2m, as it approaches breakeven. As path to profitability is the topic on CyanConnode 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 CyanConnode Holdings
CyanConnode Holdings is bordering on breakeven, according to the 2 British Semiconductor analysts. They expect the company to post a final loss in 2024, before turning a profit of UK£2.9m in 2025. So, the company is predicted to breakeven just over a year from today. 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 80% is expected, which is rather optimistic! 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 CyanConnode Holdings' upcoming projects, though, keep in mind that generally 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 prudently, with debt making up 11% 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:
This article is not intended to be a comprehensive analysis on CyanConnode Holdings, so if you are interested in understanding the company at a deeper level, take a look at CyanConnode Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further examine:
Historical Track Record: What has CyanConnode 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 CyanConnode 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.
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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.
