With the business potentially at an important milestone, we thought we'd take a closer look at SKYX Platforms Corp.'s (NASDAQ:SKYX) future prospects. SKYX Platforms Corp. provides a series of safe-smart platform technologies. The US$263m market-cap company posted a loss in its most recent financial year of US$5.9m and a latest trailing-twelve-month loss of US$25m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on SKYX Platforms' 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.
According to the 2 industry analysts covering SKYX Platforms, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$16m in 2023. So, the company is predicted to breakeven just over a year from now. 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 115%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for SKYX Platforms given that this is a high-level summary, but, keep in mind that typically 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 SKYX Platforms is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in SKYX Platforms' case is 46%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
This article is not intended to be a comprehensive analysis on SKYX Platforms, so if you are interested in understanding the company at a deeper level, take a look at SKYX Platforms' company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:
Valuation: What is SKYX Platforms 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 SKYX Platforms 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 SKYX Platforms’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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