New Age Beverages Corporation's (NASDAQ:NBEV): New Age Beverages Corporation, a healthy functional beverage company, engages in the development, marketing, sales, and distribution of beverages. With the latest financial year loss of -US$12.1m and a trailing-twelve month of -US$11.1m, the US$391m market-cap alleviates its loss by moving closer towards its target of breakeven. As path to profitability is the topic on NBEV’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for NBEV’s growth and when analysts expect the company to become profitable.
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According to the 3 industry analysts covering NBEV, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$5.3m in 2020. So, NBEV is predicted to breakeven approximately a few months from now. How fast will NBEV have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, NBEV may become profitable much later than analysts predict.
Underlying developments driving NBEV’s growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that NBEV has managed its capital judiciously, with debt making up 35% of equity. This means that NBEV has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on NBEV, so if you are interested in understanding the company at a deeper level, take a look at NBEV’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further examine:
- Historical Track Record: What has NBEV'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 New Age Beverages’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.
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