When Will Sabre Corporation (NASDAQ:SABR) Breakeven?
We feel now is a pretty good time to analyse Sabre Corporation's (NASDAQ:SABR) business as it appears the company may be on the cusp of a considerable accomplishment. Sabre Corporation, through its subsidiaries, provides software and technology solutions for the travel industry worldwide. With the latest financial year loss of US$456m and a trailing-twelve-month loss of US$610m, the US$1.5b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Sabre'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 Sabre
Sabre is bordering on breakeven, according to the 8 American Hospitality analysts. They expect the company to post a final loss in 2024, before turning a profit of US$214m in 2025. The company is therefore projected to breakeven around 2 years from now. 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 84% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Sabre given that this is a high-level summary, but, take into account that generally 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 issue worth mentioning. Sabre 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.
Next Steps:
There are too many aspects of Sabre to cover in one brief article, but the key fundamentals for the company can all be found in one place – Sabre's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
Valuation: What is Sabre 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 Sabre 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 Sabre’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.
