When Will MoneyLion Inc. (NYSE:ML) Breakeven?

By
Simply Wall St
Published
January 19, 2022
NYSE:ML
Source: Shutterstock

With the business potentially at an important milestone, we thought we'd take a closer look at MoneyLion Inc.'s (NYSE:ML) future prospects. MoneyLion Inc., a digital financial platform that provides access to banking, borrowing, and investing solutions for its customers. The company’s loss has recently broadened since it announced a US$67m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$136m, moving it further away from breakeven. The most pressing concern for investors is MoneyLion's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for MoneyLion

MoneyLion is bordering on breakeven, according to the 3 American Consumer Finance analysts. They expect the company to post a final loss in 2022, before turning a profit of US$20m in 2023. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NYSE:ML Earnings Per Share Growth January 19th 2022

Given this is a high-level overview, we won’t go into details of MoneyLion's upcoming projects, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 12% 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 key fundamentals of MoneyLion 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 MoneyLion, take a look at MoneyLion's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

  1. Valuation: What is MoneyLion 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 MoneyLion 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 MoneyLion’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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