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We feel now is a pretty good time to analyse Hemisphere Media Group, Inc.'s (NASDAQ:HMTV) business as it appears the company may be on the cusp of a considerable accomplishment. Hemisphere Media Group, Inc., the Spanish-language media company, operates broadcast and cable television networks, and digital content platforms. The company’s loss has recently broadened since it announced a US$3.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.0m, moving it further away from breakeven. As path to profitability is the topic on Hemisphere Media Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Hemisphere Media Group is bordering on breakeven, according to the 2 American Media analysts. They expect the company to post a final loss in 2020, before turning a profit of US$11m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Hemisphere Media Group's growth isn’t the focus of this broad overview, 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.
One thing we would like to bring into light with Hemisphere Media Group is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Hemisphere Media Group's case is 93%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
There are key fundamentals of Hemisphere Media Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Hemisphere Media Group, take a look at Hemisphere Media Group's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Valuation: What is Hemisphere Media Group 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 Hemisphere Media Group 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 Hemisphere Media Group’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.
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.
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