Peak Positioning Technologies Inc. (CSE:PKK) Could Be Less Than A Year Away From Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at Peak Positioning Technologies Inc.'s (CSE:PKK) future prospects. Peak Positioning Technologies Inc., through its subsidiaries, operates as an IT portfolio management company in China. The company’s loss has recently broadened since it announced a CA$2.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$3.1m, moving it further away from breakeven. The most pressing concern for investors is Peak Positioning Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Peak Positioning Technologies

Consensus from 2 of the Canadian Software analysts is that Peak Positioning Technologies is on the verge of breakeven. They expect the company to post a final loss in 2019, before turning a profit of CA$1.6k in 2020. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 222% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Peak Positioning Technologies' upcoming projects, but, bear in mind that by and large 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 The company has managed its capital judiciously, with debt making up 21% 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:

This article is not intended to be a comprehensive analysis on Peak Positioning Technologies, so if you are interested in understanding the company at a deeper level, take a look at Peak Positioning Technologies' company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is Peak Positioning Technologies 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 Peak Positioning Technologies 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 Peak Positioning Technologies’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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