U.S. Markets open in 7 hrs 41 mins
  • S&P Futures

    3,787.00
    +24.75 (+0.66%)
     
  • Dow Futures

    30,868.00
    +148.00 (+0.48%)
     
  • Nasdaq Futures

    12,919.25
    +117.00 (+0.91%)
     
  • Russell 2000 Futures

    2,145.40
    +24.60 (+1.16%)
     
  • Crude Oil

    52.30
    -0.06 (-0.11%)
     
  • Gold

    1,837.10
    +7.20 (+0.39%)
     
  • Silver

    25.20
    +0.34 (+1.36%)
     
  • EUR/USD

    1.2099
    +0.0016 (+0.1331%)
     
  • 10-Yr Bond

    1.0970
    0.0000 (0.00%)
     
  • Vix

    24.34
    +1.09 (+4.69%)
     
  • GBP/USD

    1.3604
    +0.0017 (+0.1252%)
     
  • USD/JPY

    104.0160
    +0.3290 (+0.3173%)
     
  • BTC-USD

    36,653.23
    +211.50 (+0.58%)
     
  • CMC Crypto 200

    721.05
    -14.10 (-1.92%)
     
  • FTSE 100

    6,720.65
    -15.06 (-0.22%)
     
  • Nikkei 225

    28,633.46
    +391.25 (+1.39%)
     

Clarivate Plc's (NYSE:CCC) Profit Outlook

Simply Wall St
·3 min read

With the business potentially at an important milestone, we thought we'd take a closer look at Clarivate Plc's (NYSE:CCC) future prospects. Clarivate Plc, an information services and analytics company, provides structured information and analytics for discovery, protection, and commercialization of scientific research, innovations, and brands. The US$16b market-cap company’s loss lessened since it announced a US$211m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$198m, as it approaches breakeven. As path to profitability is the topic on Clarivate'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.

View our latest analysis for Clarivate

Consensus from 6 of the American Professional Services analysts is that Clarivate is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$19m in 2021. 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 90% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Clarivate's upcoming projects, but, keep in mind that generally 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. Clarivate currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Clarivate's case is 82%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Clarivate to cover in one brief article, but the key fundamentals for the company can all be found in one place – Clarivate's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

  1. Valuation: What is Clarivate 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 Clarivate is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clarivate’s board and the CEO’s background.

  3. 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.