Yahoo Finance NewAge, Inc. (NASDAQ:NBEV) Is Expected To Breakeven In The Near Future
NewAge, Inc. (NASDAQ:NBEV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. NewAge, Inc. develops, markets, sells, and distributes healthy products in the United States, Japan, China, and internationally. With the latest financial year loss of US$39m and a trailing-twelve-month loss of US$19m, the US$204m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on NewAge's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for NewAge
Consensus from 3 of the American Beverage analysts is that NewAge is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$23m in 2022. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 116% 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.
Given this is a high-level overview, we won’t go into details of NewAge'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.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 14% 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 key fundamentals of NewAge which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at NewAge, take a look at NewAge's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is NewAge 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 NewAge 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 NewAge’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.
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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