When Will MoneyLion Inc. (NYSE:ML) Turn A Profit?
MoneyLion Inc. (NYSE:ML) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. MoneyLion Inc. provides a digital financial platform. With the latest financial year loss of US$196m and a trailing-twelve-month loss of US$177m, the US$594m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on MoneyLion's 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 MoneyLion
MoneyLion is bordering on breakeven, according to the 4 American Consumer Finance analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$20m in 2025. So, the company is predicted 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 126% is expected, 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 MoneyLion's 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.
One thing we would like to bring into light with MoneyLion is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in MoneyLion's case is 76%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of MoneyLion to cover in one brief article, but the key fundamentals for the company can all be found in one place – MoneyLion's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Historical Track Record: What has MoneyLion'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 MoneyLion'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.
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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.
