Analysts Expect Breakeven For Dolphin Entertainment, Inc. (NASDAQ:DLPN) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at Dolphin Entertainment, Inc.'s (NASDAQ:DLPN) future prospects. Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and premium content development company in the United States. The US$31m market-cap company posted a loss in its most recent financial year of US$4.8m and a latest trailing-twelve-month loss of US$17m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Dolphin Entertainment's investors mind, we've decided to gauge market sentiment. 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 Dolphin Entertainment
Dolphin Entertainment is bordering on breakeven, according to some American Entertainment analysts. They expect the company to post a final loss in 2024, before turning a profit of US$7.7m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 108% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Dolphin Entertainment given that this is a high-level summary, though, bear in mind that typically 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 Dolphin Entertainment is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Dolphin Entertainment's case is 84%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Dolphin Entertainment 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 Dolphin Entertainment, take a look at Dolphin Entertainment's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Historical Track Record: What has Dolphin Entertainment'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 Dolphin Entertainment'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.
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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.
