When Will Siyata Mobile Inc. (NASDAQ:SYTA) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Siyata Mobile Inc.'s (NASDAQ:SYTA) future prospects. Siyata Mobile Inc. develops and provides cellular-based communications solutions for enterprise customers. With the latest financial year loss of US$24m and a trailing-twelve-month loss of US$14m, the US$11m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Siyata Mobile's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Siyata Mobile
Consensus from 3 of the American Communications analysts is that Siyata Mobile is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$5.5m in 2024. The company is therefore projected 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 54%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Siyata Mobile's upcoming projects, however, 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. The company has managed its capital prudently, with debt making up 5.4% 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 Siyata Mobile 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 Siyata Mobile, take a look at Siyata Mobile's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Siyata Mobile'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 Siyata Mobile'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.
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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