Breakeven On The Horizon For Angi Inc. (NASDAQ:ANGI)

With the business potentially at an important milestone, we thought we'd take a closer look at Angi Inc.'s (NASDAQ:ANGI) future prospects. Angi Inc. connects home service professionals with consumers in the United States and internationally. The US$1.3b market-cap company announced a latest loss of US$31m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Angi's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Angi

Angi is bordering on breakeven, according to the 10 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$33m in 2025. Therefore, the company is expected 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 55%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Angi given that this is a high-level summary, however, bear in mind that by and large 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. Angi currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Angi's case is 47%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Angi 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 Angi 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 Angi’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.