Analysts Are Optimistic We'll See A Profit From Staffing 360 Solutions, Inc. (NASDAQ:STAF)
Staffing 360 Solutions, Inc. (NASDAQ:STAF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Staffing 360 Solutions, Inc., a staffing company, engages in the acquisition of staffing companies in the United States and the United Kingdom. The US$30m market-cap company posted a loss in its most recent financial year of US$24m and a latest trailing-twelve-month loss of US$19m shrinking the gap between loss and breakeven. As path to profitability is the topic on Staffing 360 Solutions' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Staffing 360 Solutions
Expectations from some of the American Professional Services analysts is that Staffing 360 Solutions is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$14m in 2021. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% year-on-year, on average, 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 Staffing 360 Solutions' growth isn’t the focus of this broad overview, though, 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 we wrap up, there’s one issue worth mentioning. Staffing 360 Solutions 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on Staffing 360 Solutions, so if you are interested in understanding the company at a deeper level, take a look at Staffing 360 Solutions' company page on Simply Wall St. We've also put together a list of important factors you should further research:
Historical Track Record: What has Staffing 360 Solutions' 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 Staffing 360 Solutions' 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.
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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