Breakeven On The Horizon For Nayax Ltd. (TLV:NYAX)

With the business potentially at an important milestone, we thought we'd take a closer look at Nayax Ltd.'s (TLV:NYAX) future prospects. Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The ₪2.6b market-cap company’s loss lessened since it announced a US$38m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$20m, as it approaches breakeven. Many investors are wondering about the rate at which Nayax will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Nayax

Consensus from 3 of the Israeli Electronic analysts is that Nayax is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$19m in 2025. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 121%, which is extremely buoyant. 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, however, 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 The company has managed its capital judiciously, with debt making up 37% 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 Nayax, so if you are interested in understanding the company at a deeper level, take a look at Nayax's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has Nayax's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.