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When Can We Expect A Profit From The Joint Corp (NASDAQ:JYNT)?

The Joint Corp’s (NASDAQ:JYNT): The Joint Corp. develops, owns, operates, supports, and manages chiropractic clinics in the United States. The US$111.60m market-cap company’s loss lessens since it announced a -US$3.28m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$1.90m, as it approaches breakeven. The most pressing concern for investors is JYNT’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for JYNT, its year of breakeven and its implied growth rate.

View out our latest analysis for Joint

According to the industry analysts covering JYNT, breakeven is near. They expect the company to post a final loss in 2018, before turning a profit of US$2.50m in 2019. Therefore, JYNT is expected to breakeven roughly a few months from now. How fast will JYNT have to grow each year in order to reach the breakeven point by 2019? Working backwards from analyst estimates, it turns out that they expect the company to grow 106.05% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqCM:JYNT Past Future Earnings June 27th 18
NasdaqCM:JYNT Past Future Earnings June 27th 18

Given this is a high-level overview, I won’t go into details of JYNT’s upcoming projects, however, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with JYNT is its debt-to-equity ratio of 103.92%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and JYNT 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.

Next Steps:

There are key fundamentals of JYNT 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 JYNT, take a look at JYNT’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should look at:

  1. Valuation: What is JYNT 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 JYNT 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 Joint’s board and the CEO’s back ground.

  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.


To help readers see pass 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.

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