Stock Analysis

When Will Playmaker Capital Inc. (CVE:PMKR) Become Profitable?

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With the business potentially at an important milestone, we thought we'd take a closer look at Playmaker Capital Inc.'s (CVE:PMKR) future prospects. Playmaker Capital Inc. operates as a digital sports media company that lives at the intersection of sports, betting, media, and technology. With the latest financial year loss of US$3.5m and a trailing-twelve-month loss of US$9.9m, the CA$115m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Playmaker Capital's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Playmaker Capital

Playmaker Capital is bordering on breakeven, according to the 6 Canadian Media analysts. They expect the company to post a final loss in 2023, before turning a profit of US$6.1m in 2024. Therefore, the company is expected to breakeven just over a year 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 120% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

TSXV:PMKR Earnings Per Share Growth March 17th 2023

Underlying developments driving Playmaker Capital's growth isn’t the focus of this broad overview, though, keep in mind that by and large 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 38% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Playmaker Capital to cover in one brief article, but the key fundamentals for the company can all be found in one place – Playmaker Capital's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

  1. Valuation: What is Playmaker Capital 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 Playmaker Capital 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 Playmaker Capital’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.

Valuation is complex, but we're helping make it simple.

Find out whether Playmaker Capital is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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