Yahoo Finance Analysts Expect Inspired Entertainment, Inc. (NASDAQ:INSE) To Breakeven Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Inspired Entertainment, Inc.'s (NASDAQ:INSE) future prospects. Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies virtual sports and server based gaming (SBG) products to regulated lottery, betting, and gaming operators worldwide. The US$377m market-cap company’s loss lessened since it announced a US$32m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$32m, as it approaches breakeven. Many investors are wondering about the rate at which Inspired Entertainment 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.
View our latest analysis for Inspired Entertainment
Inspired Entertainment is bordering on breakeven, according to the 4 American Hospitality analysts. They expect the company to post a final loss in 2021, before turning a profit of US$7.4m in 2022. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 74% is expected, 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 Inspired Entertainment's upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Inspired Entertainment is it 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 Inspired Entertainment to cover in one brief article, but the key fundamentals for the company can all be found in one place – Inspired Entertainment's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Valuation: What is Inspired Entertainment 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 Inspired Entertainment 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 Inspired Entertainment’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.
