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Cision Ltd.’s (NYSE:CISN): Cision Ltd. provides public relations (PR) software, media distribution, media intelligence, and related professional services worldwide. With the latest financial year loss of -US$123.0m and a trailing-twelve month of -US$47.4m, the US$1.9b market-cap alleviates its loss by moving closer towards its target of breakeven. Many investors are wondering the rate at which CISN will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CISN, its year of breakeven and its implied growth rate.
Consensus from the 8 Software analysts is CISN is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$31m in 2020. So, CISN is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which CISN must grow year-on-year. It turns out an average annual growth rate of 51% is expected, which is rather optimistic! If this rate turns out to be too aggressive, CISN may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for CISN given that this is a high-level summary, but, 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 I wrap up, there’s one issue worth mentioning. CISN currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and CISN has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
There are key fundamentals of CISN which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CISN, take a look at CISN’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should look at:
Valuation: What is CISN 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 CISN 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 Cision’s board and the CEO’s back ground.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.