Breakeven Is Near for SRAX, Inc. (NASDAQ:SRAX)
With the business potentially at an important milestone, we thought we'd take a closer look at SRAX, Inc.'s (NASDAQ:SRAX) future prospects. SRAX, Inc., a technology company, focused on enhancing communications between public companies and their shareholders and investors in the United States. The US$57m market-cap company’s loss lessened since it announced a US$9.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.5m, as it approaches breakeven. Many investors are wondering about the rate at which SRAX will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for SRAX
Expectations from some of the American Software analysts is that SRAX is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$12m in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 110%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for SRAX given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 20% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of SRAX to cover in one brief article, but the key fundamentals for the company can all be found in one place – SRAX's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:
Valuation: What is SRAX 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 SRAX 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 SRAX’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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