Market Sentiment Around Loss-Making Marble Financial Inc. (CSE:MRBL)

By
Simply Wall St
Published
December 03, 2020

With the business potentially at an important milestone, we thought we'd take a closer look at Marble Financial Inc.'s (CSE:MRBL) future prospects. Marble Financial Inc. operated as financial technology company in Canada. The CA$8.6m market-cap company posted a loss in its most recent financial year of CA$3.2m and a latest trailing-twelve-month loss of CA$3.4m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Marble Financial's 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 Marble Financial

Expectations from some of the Canadian Consumer Finance analysts is that Marble Financial is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of CA$937k in 2023. The company is therefore projected to breakeven around 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 68% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

CNSX:MRBL Earnings Per Share Growth December 3rd 2020

Underlying developments driving Marble Financial's growth isn’t the focus of this broad overview, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Marble Financial currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. 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 examine:

  1. Valuation: What is Marble Financial 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 Marble Financial 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 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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