Analysts Expect Tingo Group, Inc. (NASDAQ:TIO) To Breakeven Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Tingo Group, Inc.'s (NASDAQ:TIO) future prospects. Tingo Group, Inc., an agri-fintech company, operates a marketplace platform that empowers social upliftment through mobile, technology, and financial access for rural farming communities in Africa, Southeast Asia, and the Middle East. The US$111m market-cap company posted a loss in its most recent financial year of US$36m and a latest trailing-twelve-month loss of US$39m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Tingo Group'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.
View our latest analysis for Tingo Group
Tingo Group is bordering on breakeven, according to some American Electronic analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$1.0b in 2023. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 196%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Tingo Group's growth isn’t the focus of this broad overview, however, 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.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.6% 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.
This article is not intended to be a comprehensive analysis on Tingo Group, so if you are interested in understanding the company at a deeper level, take a look at Tingo Group's company page on Simply Wall St. We've also put together a list of key aspects you should further research:
Historical Track Record: What has Tingo Group'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 Tingo Group'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.
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