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We feel now is a pretty good time to analyse MoneyLion Inc.'s (NYSE:ML) business as it appears the company may be on the cusp of a considerable accomplishment. MoneyLion Inc., a digital financial platform that provides access to banking, borrowing, and investing solutions for its customers. The company’s loss has recently broadened since it announced a US$67m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$136m, moving it further away from breakeven. As path to profitability is the topic on MoneyLion's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Consensus from 3 of the American Consumer Finance analysts is that MoneyLion is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$20m in 2023. The company is therefore projected 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 89% is expected, which is rather optimistic! 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 MoneyLion given that this is a high-level summary, but, keep in mind that by and large 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 12% 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.
There are too many aspects of MoneyLion to cover in one brief article, but the key fundamentals for the company can all be found in one place – MoneyLion's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
Valuation: What is MoneyLion 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 MoneyLion 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 MoneyLion’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.
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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.