Boxlight Corporation's (NASDAQ:BOXL) Profit Outlook
We feel now is a pretty good time to analyse Boxlight Corporation's (NASDAQ:BOXL) business as it appears the company may be on the cusp of a considerable accomplishment. Boxlight Corporation develops, sells, and services interactive classroom technology products and solutions for the K-12 education market worldwide. The US$37m market-cap company’s loss lessened since it announced a US$15m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$13m, as it approaches breakeven. The most pressing concern for investors is Boxlight's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Boxlight
Consensus from 3 of the American Tech analysts is that Boxlight is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$6.3m in 2023. The company is therefore projected to breakeven just over a year from today. 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 153% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Boxlight'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.
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 74%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Boxlight, so if you are interested in understanding the company at a deeper level, take a look at Boxlight's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
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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