The OLB Group, Inc. (NASDAQ:OLB): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at The OLB Group, Inc.'s (NASDAQ:OLB) future prospects. The OLB Group, Inc. operates as a FinTech and payment facilitator company in the United States. The company’s loss has recently broadened since it announced a US$1.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.5m, moving it further away from breakeven. Many investors are wondering about the rate at which OLB 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.

View our latest analysis for OLB Group

OLB Group is bordering on breakeven, according to the 2 American IT analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$3.0m in 2022. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 106% is expected, 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.

Underlying developments driving OLB Group's growth isn’t the focus of this broad overview, but, bear in mind that typically 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 2.1% 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 too many aspects of OLB Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – OLB Group's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Historical Track Record: What has OLB Group'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on OLB 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.

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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.
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