When Will Janison Education Group Limited (ASX:JAN) Become Profitable?
We feel now is a pretty good time to analyse Janison Education Group Limited's (ASX:JAN) business as it appears the company may be on the cusp of a considerable accomplishment. Janison Education Group Limited engages in licensing, hosting, and supporting online student assessment and e-learning software solutions in Australia and internationally. With the latest financial year loss of AU$2.2m and a trailing-twelve-month loss of AU$1.5m, the AU$189m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Janison Education Group will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Janison Education Group
Janison Education Group is bordering on breakeven, according to the 3 Australian Software analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$167k in 2022. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 74%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Janison Education Group'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 we wrap up, there’s one aspect worth mentioning. Janison Education Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Janison Education Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Janison Education Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
Valuation: What is Janison Education 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 Janison Education 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 Janison Education 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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