ESTsoft Corp. (KOSDAQ:047560) Has Found A Path To Profitability

ESTsoft Corp. (KOSDAQ:047560) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ESTsoft Corp. engages in the software business in South Korea. The ₩221b market-cap company announced a latest loss of ₩12b on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is ESTsoft'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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Consensus from 2 of the South Korean Software analysts is that ESTsoft is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of ₩1.2b in 2025. So, the company is predicted to breakeven approximately 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 151%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for ESTsoft given that this is a high-level summary, though, keep 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 ESTsoft

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 28% 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:

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

1. Historical Track Record: What has ESTsoft'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 ESTsoft'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.