Jason Industries Inc (NASDAQ:JASN): Are Analysts Optimistic?

Jason Industries Inc’s (NASDAQ:JASN): Jason Industries, Inc., together with its subsidiaries, manufactures and sells finishing products, components, seating products, and acoustics in the United States and internationally. The US$78.90m market-cap posted a loss in its most recent financial year of -US$8.26m and a latest trailing-twelve-month loss of -US$9.39m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which JASN will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for JASN, its year of breakeven and its implied growth rate.

See our latest analysis for Jason Industries

According to the industry analysts covering JASN, breakeven is near. They expect the company to post a final loss in -1, before turning a profit of US$0 in . Therefore, JASN is expected to breakeven roughly a couple of months from now! How fast will JASN have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow -50.32% year-on-year, on average,

NasdaqCM:JASN Past Future Earnings June 17th 18
NasdaqCM:JASN Past Future Earnings June 17th 18

I’m not going to go through company-specific developments for JASN given that this is a high-level summary, though, bear in mind that by and large periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with JASN is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in JASN’s case, it has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of JASN which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at JASN, take a look at JASN’s company page on Simply Wall St. I’ve also put together a list of relevant aspects you should look at:

  1. Valuation: What is JASN 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 JASN 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 Jason Industries’s board and the CEO’s back ground.
  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.