Yahoo Finance Breakeven Is Near for CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS)
We feel now is a pretty good time to analyse CCC Intelligent Solutions Holdings Inc.'s (NYSE:CCCS) business as it appears the company may be on the cusp of a considerable accomplishment. CCC Intelligent Solutions Holdings Inc. provides SaaS platform for the property and casualty insurance economy. With the latest financial year loss of US$17m and a trailing-twelve-month loss of US$185m, the US$6.9b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is CCC Intelligent Solutions Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for CCC Intelligent Solutions Holdings
According to the 6 industry analysts covering CCC Intelligent Solutions Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$72m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 113% year-on-year, on average, which signals high confidence from analysts. 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 CCC Intelligent Solutions Holdings 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.
Before we wrap up, there’s one issue worth mentioning. CCC Intelligent Solutions Holdings currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in CCC Intelligent Solutions Holdings' case is 43%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of CCC Intelligent Solutions Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – CCC Intelligent Solutions Holdings' company page on Simply Wall St. We've also compiled a list of key factors you should further research:
Valuation: What is CCC Intelligent Solutions Holdings 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 CCC Intelligent Solutions Holdings 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 CCC Intelligent Solutions Holdings’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.
