Yahoo Finance Breakeven Is Near for Quisitive Technology Solutions, Inc. (CVE:QUIS)
With the business potentially at an important milestone, we thought we'd take a closer look at Quisitive Technology Solutions, Inc.'s (CVE:QUIS) future prospects. Quisitive Technology Solutions, Inc., through its subsidiaries, provides Microsoft solutions primarily in North America and South Asia. The CA$76m market-cap company’s loss lessened since it announced a US$12m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$9.4m, as it approaches breakeven. Many investors are wondering about the rate at which Quisitive Technology Solutions 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.
View our latest analysis for Quisitive Technology Solutions
According to the 8 industry analysts covering Quisitive Technology Solutions, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$474k in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 165% is expected, which signals high confidence from analysts. 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 Quisitive Technology Solutions' upcoming projects, but, take into account that typically 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. Quisitive Technology Solutions currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Quisitive Technology Solutions' case is 54%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Quisitive Technology Solutions, so if you are interested in understanding the company at a deeper level, take a look at Quisitive Technology Solutions' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Valuation: What is Quisitive Technology Solutions 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 Quisitive Technology Solutions 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 Quisitive Technology Solutions’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
