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Loss-Making Blackboxstocks Inc. (NASDAQ:BLBX) Expected To Breakeven In The Medium-Term

·3 min read

We feel now is a pretty good time to analyse Blackboxstocks Inc.'s (NASDAQ:BLBX) business as it appears the company may be on the cusp of a considerable accomplishment. Blackboxstocks Inc. develops and markets financial technology and social media hybrid platform. The company’s loss has recently broadened since it announced a US$2.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$3.9m, moving it further away from breakeven. As path to profitability is the topic on Blackboxstocks' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Blackboxstocks

Consensus from 3 of the American Software analysts is that Blackboxstocks is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$7.5m in 2023. The company is therefore projected to breakeven just over a year from today. 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 159% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Blackboxstocks' growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 17% 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.

Next Steps:

There are key fundamentals of Blackboxstocks 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 Blackboxstocks, take a look at Blackboxstocks' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

  1. Valuation: What is Blackboxstocks 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 Blackboxstocks is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blackboxstocks’s board and the CEO’s background.

  3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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