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Breakeven On The Horizon For Payoneer Global Inc. (NASDAQ:PAYO)

Payoneer Global Inc. (NASDAQ:PAYO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Payoneer Global Inc. operates a payment and commerce-enabling platform that facilitates marketplaces, platforms and online merchants worldwide. The US$1.9b market-cap company’s loss lessened since it announced a US$68m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$21m, as it approaches breakeven. Many investors are wondering about the rate at which Payoneer Global 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.

Check out our latest analysis for Payoneer Global

According to the 7 industry analysts covering Payoneer Global, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$7.7m in 2024. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Payoneer Global 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.

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One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 3.0% 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 too many aspects of Payoneer Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – Payoneer Global's company page on Simply Wall St. We've also put together a list of key factors you should further research:

  1. Valuation: What is Payoneer Global 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 Payoneer Global is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Payoneer Global’s board and the CEO’s background.

  3. 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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