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One Stop Systems, Inc. (NASDAQ:OSS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. One Stop Systems, Inc. designs, manufactures, and markets high-performance computing modules and systems for edge deployments in the United States and internationally. The US$105m market-cap company announced a latest loss of US$6.5k on 31 December 2020 for its most recent financial year result. Many investors are wondering about the rate at which One Stop Systems 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.
Consensus from 3 of the American Tech analysts is that One Stop Systems is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$1.1m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% 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.
Given this is a high-level overview, we won’t go into details of One Stop Systems' upcoming projects, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 18% 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.
This article is not intended to be a comprehensive analysis on One Stop Systems, so if you are interested in understanding the company at a deeper level, take a look at One Stop Systems' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Historical Track Record: What has One Stop Systems' 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 One Stop Systems' 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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