Yahoo Finance Analysts Are Optimistic We'll See A Profit From Inspired Entertainment, Inc. (NASDAQ:INSE)
Inspired Entertainment, Inc. (NASDAQ:INSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. The US$223m market-cap company’s loss lessened since it announced a US$37m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$19m, as it approaches breakeven. As path to profitability is the topic on Inspired Entertainment's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Inspired Entertainment
Consensus from 5 of the American Hospitality analysts is that Inspired Entertainment is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$20m in 2022. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 42%, 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 Inspired Entertainment given that this is a high-level summary, but, take into account that by and large 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. Inspired Entertainment 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Inspired Entertainment, so if you are interested in understanding the company at a deeper level, take a look at Inspired Entertainment's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
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.
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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