When Will ContentreeJoongAng corp. (KRX:036420) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at ContentreeJoongAng corp.'s (KRX:036420) future prospects. ContentreeJoongAng corp. operates as an entertainment and media company in South Korea and internationally. The ₩209b market-cap company posted a loss in its most recent financial year of ₩66b and a latest trailing-twelve-month loss of ₩74b leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which ContentreeJoongAng will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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ContentreeJoongAng is bordering on breakeven, according to the 7 South Korean Entertainment analysts. They expect the company to post a final loss in 2025, before turning a profit of ₩2.4b in 2026. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 104% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving ContentreeJoongAng's growth isn’t the focus of this broad overview, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for ContentreeJoongAng

One thing we would like to bring into light with ContentreeJoongAng is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. 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 key fundamentals of ContentreeJoongAng which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at ContentreeJoongAng, take a look at ContentreeJoongAng's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is ContentreeJoongAng 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 ContentreeJoongAng 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 ContentreeJoongAng’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.