Breakeven On The Horizon For ATN International, Inc. (NASDAQ:ATNI)
We feel now is a pretty good time to analyse ATN International, Inc.'s (NASDAQ:ATNI) business as it appears the company may be on the cusp of a considerable accomplishment. ATN International, Inc., through its subsidiaries, provides telecommunications services in the United States, the Caribbean, and Bermuda. The US$535m market-cap company announced a latest loss of US$22m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on ATN International'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.
Check out our latest analysis for ATN International
According to the 2 industry analysts covering ATN International, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$3.6m in 2023. Therefore, the company is expected to breakeven just over a year 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 110% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of ATN International's upcoming projects, but, take into account that typically 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. ATN International currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ATN International's case is 47%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of ATN International to cover in one brief article, but the key fundamentals for the company can all be found in one place – ATN International's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Valuation: What is ATN International 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 ATN International 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 ATN International’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.
