SAMG Entertainment Co., Ltd. (KOSDAQ:419530) Is About To Turn The Corner

We feel now is a pretty good time to analyse SAMG Entertainment Co., Ltd.'s (KOSDAQ:419530) business as it appears the company may be on the cusp of a considerable accomplishment. SAMG Entertainment Co., Ltd. produces TV series and animated feature films, and AD and games worldwide. The ₩272b market-cap company announced a latest loss of ₩19b on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is SAMG Entertainment's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 2 industry analysts covering SAMG Entertainment, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of ₩16b in 2025. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 108%, which is rather optimistic! 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 SAMG Entertainment's upcoming projects, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for SAMG Entertainment

One thing we would like to bring into light with SAMG Entertainment is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in SAMG Entertainment's case is 79%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment’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.