i3 Verticals, Inc. (NASDAQ:IIIV) Is About To Turn The Corner
i3 Verticals, Inc. (NASDAQ:IIIV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. On 30 September 2023, the US$671m market-cap company posted a loss of US$811k for its most recent financial year. The most pressing concern for investors is i3 Verticals' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for i3 Verticals
Consensus from 8 of the American Diversified Financial analysts is that i3 Verticals is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$15m in 2024. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving i3 Verticals' growth isn’t the focus of this broad overview, but, keep in mind that generally 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 issue worth mentioning. i3 Verticals currently has a debt-to-equity ratio of 117%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of i3 Verticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – i3 Verticals' company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
Historical Track Record: What has i3 Verticals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on i3 Verticals' 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.
