ShiftPixy Inc’s (NASDAQ:PIXY): ShiftPixy, Inc. provides employment services for businesses; and workers in shift or other part-time/temporary positions in the United States. The US$122.98M market-cap posted a loss in its most recent financial year of -US$7.49M and a latest trailing-twelve-month loss of -US$11.21M leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which PIXY will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for PIXY’s growth and when analysts expect the company to become profitable.View our latest analysis for ShiftPixy
According to the industry analysts covering PIXY, breakeven is near. They expect the company to post a final loss in 2018, before turning a profit of US$400.00K in 2019. PIXY is therefore projected to breakeven around a few months from now. In order to meet this breakeven date, I calculated the rate at which PIXY must grow year-on-year. It turns out an average annual growth rate of 95.16% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for PIXY given that this is a high-level summary, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. PIXY currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that PIXY has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on PIXY, so if you are interested in understanding the company at a deeper level, take a look at PIXY’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:
- Historical Track Record: What has PIXY’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ShiftPixy’s board and the CEO’s back ground.
- 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.