Yahoo Finance Sabre Corporation (NASDAQ:SABR): Is Breakeven Near?
Sabre Corporation (NASDAQ:SABR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sabre Corporation, through its subsidiaries, provides software and technology solutions for the travel industry worldwide. The US$1.1b market-cap company posted a loss in its most recent financial year of US$456m and a latest trailing-twelve-month loss of US$602m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Sabre's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Sabre
According to the 8 industry analysts covering Sabre, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$253m in 2025. The company is therefore projected to breakeven around 2 years 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 70% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Sabre's growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Sabre is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Sabre 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 Sabre, take a look at Sabre's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:
Valuation: What is Sabre 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 Sabre is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sabre’s 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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