When Will Angi Inc. (NASDAQ:ANGI) Turn A Profit?
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. The US$1.6b market-cap company’s loss lessened since it announced a US$128m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$110m, as it approaches breakeven. Many investors are wondering about the rate at which Angi will turn a profit, with the big question being “when will the company breakeven?” 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 Angi
Consensus from 12 of the American Interactive Media and Services analysts is that Angi is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$45m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 70% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Angi's growth isn’t the focus of this broad overview, though, bear in mind 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. Typically, debt shouldn’t exceed 40% of your equity, which in Angi's case is 47%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Angi to cover in one brief article, but the key fundamentals for the company can all be found in one place – Angi's company page on Simply Wall St. We've also put together a list of pertinent 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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