Mawson Infrastructure Group, Inc.'s (NASDAQ:MIGI) Shift From Loss To Profit

By
Simply Wall St
Published
October 01, 2021
NasdaqCM:MIGI
Source: Shutterstock

With the business potentially at an important milestone, we thought we'd take a closer look at Mawson Infrastructure Group, Inc.'s (NASDAQ:MIGI) future prospects. Mawson Infrastructure Group Inc., a digital infrastructure provider, operates in cryptocurrency mining and digital asset infrastructure activities in the United States and Australia. The company’s loss has recently broadened since it announced a US$5.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$47m, moving it further away from breakeven. Many investors are wondering about the rate at which Mawson Infrastructure Group will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Mawson Infrastructure Group

Mawson Infrastructure Group is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2021, before turning a profit of US$102m in 2022. Therefore, the company is expected to breakeven just over a year from now. 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 168%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
NasdaqCM:MIGI Earnings Per Share Growth October 1st 2021

We're not going to go through company-specific developments for Mawson Infrastructure Group given that this is a high-level summary, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 3.4% 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 Mawson Infrastructure Group 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 Mawson Infrastructure Group, take a look at Mawson Infrastructure Group's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

  1. Valuation: What is Mawson Infrastructure Group 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 Mawson Infrastructure Group 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 Mawson Infrastructure Group’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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.