Analysts Are Optimistic We'll See A Profit From Nayax Ltd. (TLV:NYAX)

Nayax Ltd. (TLV:NYAX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nayax Ltd., a fintech company, develops a complete solution for automated self-service retailers, commerce, and other merchants in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. On 31 December 2024, the ₪5.5b market-cap company posted a loss of US$5.6m for its most recent financial year. Many investors are wondering about the rate at which Nayax will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Nayax is bordering on breakeven, according to the 6 Israeli Electronic analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$27m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

View our latest analysis for Nayax

Before we wrap up, there’s one issue worth mentioning. Nayax currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Nayax's case is 42%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Nayax 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 Nayax 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 Nayax’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.