iPass Inc’s (NASDAQ:IPAS): iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. The US$27.64M market-cap posted a loss in its most recent financial year of -US$20.55M and a latest trailing-twelve-month loss of -US$20.25M shrinking the gap between loss and breakeven. The most pressing concern for investors is IPAS’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for IPAS.
According to the industry analysts covering IPAS, breakeven is near. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$301.00K in 2019. IPAS is therefore projected to breakeven around a few months from now. How fast will IPAS 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 109.49% year-on-year, on average, 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 IPAS’s growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one issue worth mentioning. IPAS currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are too many aspects of IPAS to cover in one brief article, but the key fundamentals for the company can all be found in one place – IPAS’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further examine:
- Historical Track Record: What has IPAS’s 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 iPass’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 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.