Marble Financial Inc.'s (CSE:MRBL) Path To Profitability

By
Simply Wall St
Published
August 20, 2020

We feel now is a pretty good time to analyse Marble Financial Inc.'s (CSE:MRBL) business as it appears the company may be on the cusp of a considerable accomplishment. Marble Financial Inc. operated as financial technology company in Canada. With the latest financial year loss of CA$3.2m and a trailing-twelve-month loss of CA$3.4m, the CA$12m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Marble Financial's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Marble Financial

Marble Financial is bordering on breakeven, according to some Canadian Consumer Finance analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of CA$937k in 2023. So, the company is predicted to breakeven approximately 3 years from now. 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 64% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

CNSX:MRBL Earnings Per Share Growth August 20th 2020

Given this is a high-level overview, we won’t go into details of Marble Financial's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Marble Financial is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Marble Financial to cover in one brief article, but the key fundamentals for the company can all be found in one place – Marble Financial's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

  1. Historical Track Record: What has Marble Financial's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Marble Financial'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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