Yahoo Finance Breakeven On The Horizon For Snap One Holdings Corp. (NASDAQ:SNPO)
We feel now is a pretty good time to analyse Snap One Holdings Corp.'s (NASDAQ:SNPO) business as it appears the company may be on the cusp of a considerable accomplishment. Snap One Holdings Corp. provides smart-living solutions in the United States and internationally. On 29 December 2023, the US$810m market-cap company posted a loss of US$21m for its most recent financial year. The most pressing concern for investors is Snap One Holdings' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Snap One Holdings
According to the 8 industry analysts covering Snap One Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$987k in 2025. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 102%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Snap One Holdings' upcoming projects, however, take into account that generally 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 Snap One Holdings is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Snap One Holdings' case is 66%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Snap One Holdings 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 Snap One Holdings, take a look at Snap One Holdings' company page on Simply Wall St. We've also put together a list of key aspects you should further research:
Valuation: What is Snap One 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 Snap One 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 Snap One 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.
