eXp World Holdings Inc (NASDAQ:EXPI): When Will It Breakeven?

eXp World Holdings Inc’s (NASDAQ:EXPI): eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. With the latest financial year loss of -US$22.13m and a trailing-twelve month of -US$29.93m, the US$809.37m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which EXPI 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 EXPI, its year of breakeven and its implied growth rate.

See our latest analysis for eXp World Holdings

EXPI is bordering on breakeven, according to Real Estate analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, EXPI is expected to breakeven roughly a couple of months from now! What rate will EXPI have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 44.76%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:EXPI Past Future Earnings June 18th 18
NasdaqGM:EXPI Past Future Earnings June 18th 18

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

Before I wrap up, there’s one aspect worth mentioning. EXPI currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. This means that EXPI 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.

Next Steps:

This article is not intended to be a comprehensive analysis on EXPI, so if you are interested in understanding the company at a deeper level, take a look at EXPI’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should further examine:

  1. Valuation: What is EXPI 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 EXPI 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 eXp World Holdings’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.