Yahoo Finance When Will Seeing Machines Limited (LON:SEE) Become Profitable?
Seeing Machines Limited's (LON:SEE): Seeing Machines Limited provides driver monitoring technologies in Australia, North America, the Asia Pacific, Europe, and internationally. The UK£103m market-cap company announced a latest loss of -AU$41.8m on 30 June 2019 for its most recent financial year result. Many investors are wondering the rate at which SEE will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for SEE’s growth and when analysts expect the company to become profitable.
View our latest analysis for Seeing Machines
SEE is bordering on breakeven, according to the 2 Electronic analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$48m in 2022. So, SEE is predicted to breakeven approximately 2 years from now. What rate will SEE have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 86%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of SEE’s upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. SEE has managed its capital judiciously, with debt making up 0.9% of equity. This means that SEE 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 SEE to cover in one brief article, but the key fundamentals for the company can all be found in one place – SEE’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:
Historical Track Record: What has SEE's 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 Seeing Machines’s board and the CEO’s back ground.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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