Stock Analysis

SKYX Platforms Corp. (NASDAQ:SKYX): When Will It Breakeven?

  •  Updated
NasdaqCM:SKYX
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With the business potentially at an important milestone, we thought we'd take a closer look at SKYX Platforms Corp.'s (NASDAQ:SKYX) future prospects. SKYX Platforms Corp. provides a series of safe-smart platform technologies. The company’s loss has recently broadened since it announced a US$5.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$25m, moving it further away from breakeven. Many investors are wondering about the rate at which SKYX Platforms 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.

See our latest analysis for SKYX Platforms

SKYX Platforms is bordering on breakeven, according to the 2 American Electrical analysts. They expect the company to post a final loss in 2022, before turning a profit of US$16m in 2023. So, the company is predicted 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 115%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqCM:SKYX Earnings Per Share Growth September 29th 2022

We're not going to go through company-specific developments for SKYX Platforms given that this is a high-level summary, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. SKYX Platforms currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in SKYX Platforms' case is 46%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

  1. Valuation: What is SKYX Platforms 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 SKYX Platforms 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 SKYX Platforms’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.

Valuation is complex, but we're helping make it simple.

Find out whether SKYX Platforms is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NasdaqCM:SKYX

SKYX Platforms

SKYX Platforms Corp. provides a series of safe-smart platform technologies.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth5
Past Performance0
Financial Health4
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

High growth potential with adequate balance sheet.