Yahoo Finance Glu Mobile Inc (NASDAQ:GLUU): Are Analysts Optimistic?
Glu Mobile Inc’s (NASDAQ:GLUU): Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The US$775.11M market-cap company’s loss lessens since it announced a -US$97.57M bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$82.01M, as it approaches breakeven. Many investors are wondering the rate at which GLUU will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for GLUU.
View our latest analysis for Glu Mobile
Expectation from analysts is GLUU is on the verge of breakeven. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$1.45M in 2019. So, GLUU is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which GLUU must grow year-on-year. It turns out an average annual growth rate of 108.27% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, GLUU may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of GLUU’s upcoming projects, though, 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.
One thing I’d like to point out is that GLUU has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. GLUU currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of GLUU to cover in one brief article, but the key fundamentals for the company can all be found in one place – GLUU’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further research:
Valuation: What is GLUU 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 GLUU 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 Glu Mobile’s board and the CEO’s back ground.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
