Angi Inc. (NASDAQ:ANGI) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Angi Inc.'s (NASDAQ:ANGI) future prospects. Angi Inc. connects home service professionals with consumers in the United States and internationally. With the latest financial year loss of US$128m and a trailing-twelve-month loss of US$89m, the US$964m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Angi's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Angi
According to the 10 industry analysts covering Angi, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$18m in 2025. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 79%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Angi's upcoming projects, but, take into account that by and large 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 Angi is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Angi's case is 47%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Angi, so if you are interested in understanding the company at a deeper level, take a look at Angi's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
Valuation: What is Angi worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Angi is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Angi’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.
