eXp World Holdings Inc’s (NASDAQ:EXPI): eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The US$707m market-cap posted a loss in its most recent financial year of -US$22.1m and a latest trailing-twelve-month loss of -US$29.0m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on EXPI’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for EXPI, its year of breakeven and its implied growth rate.
According to the industry analysts covering EXPI, breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$11m in 2020. EXPI is therefore projected to breakeven around a couple of months from now! What rate will EXPI have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 76%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving EXPI’s growth isn’t the focus of this broad overview, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that EXPI has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. EXPI currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of EXPI to cover in one brief article, but the key fundamentals for the company can all be found in one place – EXPI’s company page on Simply Wall St. I’ve also put together a list of important factors you should further research:
- Valuation: What is EXPI 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 EXPI 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 eXp World Holdings’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 firstname.lastname@example.org.