comScore, Inc. (NASDAQ:SCOR): Is Breakeven Near?
With the business potentially at an important milestone, we thought we'd take a closer look at comScore, Inc.'s (NASDAQ:SCOR) future prospects. comScore, Inc. operates as an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms in the United States, Europe, Latin America, Canada, and internationally. With the latest financial year loss of US$82m and a trailing-twelve-month loss of US$121m, the US$74m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is comScore'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 comScore
Consensus from 4 of the American Media analysts is that comScore is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$11m in 2025. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 107%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for comScore given that this is a high-level summary, though, take into account that generally 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 prudently, with debt making up 5.8% 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 comScore to cover in one brief article, but the key fundamentals for the company can all be found in one place – comScore's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Valuation: What is comScore 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 comScore 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 comScore’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.
