Janison Education Group Limited (ASX:JAN): Are Analysts Optimistic?

Janison Education Group Limited (ASX:JAN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Janison Education Group Limited engages in licensing, hosting, and supporting online student assessment and e-learning software solutions in Australia and internationally. The AU$166m market-cap company’s loss lessened since it announced a AU$2.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$1.5m, as it approaches breakeven. As path to profitability is the topic on Janison Education Group's investors mind, we've decided to gauge market sentiment. 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 Janison Education Group

Janison Education Group is bordering on breakeven, according to the 3 Australian Software analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$867k in 2022. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 119% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Janison Education Group given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Janison Education Group has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company 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 key fundamentals of Janison Education Group 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 Janison Education Group, take a look at Janison Education Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is Janison Education Group 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 Janison Education Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Janison Education Group’s board and the CEO’s background.
3. 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. 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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