Boxlight Corporation (NASDAQ:BOXL) On The Verge Of Breaking Even
Boxlight Corporation (NASDAQ:BOXL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Boxlight Corporation develops, sells, and services interactive classroom technology products and solutions for the K-12 education market worldwide. On 31 December 2022, the US$29m market-cap company posted a loss of US$5.0m for its most recent financial year. As path to profitability is the topic on Boxlight'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.
See our latest analysis for Boxlight
Boxlight is bordering on breakeven, according to the 3 American Tech analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$2.7m in 2023. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 119% is expected, 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 Boxlight's upcoming projects, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Boxlight currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Boxlight's case is 55%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Boxlight 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 Boxlight, take a look at Boxlight's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Historical Track Record: What has Boxlight'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 Boxlight'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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