Analysts Are Optimistic We'll See A Profit From CyanConnode Holdings plc (LON:CYAN)

CyanConnode Holdings plc (LON:CYAN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CyanConnode Holdings plc engages in the design, development, and sale of narrowband radio frequency (RF) mesh and cellular networks that enable Omni Internet of Things (IoT) communications in India, the United Arab Emirates, and internationally. On 31 March 2024, the UK£26m market-cap company posted a loss of UK£3.8m for its most recent financial year. As path to profitability is the topic on CyanConnode Holdings' 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 CyanConnode Holdings

CyanConnode Holdings is bordering on breakeven, according to the 3 British Semiconductor analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£2.9m in 2025. The company is therefore projected to breakeven around 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 78% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving CyanConnode Holdings' growth isn’t the focus of this broad overview, though, 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’d like to point out is that CyanConnode Holdings has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is CyanConnode Holdings 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 CyanConnode Holdings 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 CyanConnode Holdings’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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.