Analysts Are Optimistic We'll See A Profit From Tingo Group, Inc. (NASDAQ:TIO)

We feel now is a pretty good time to analyse Tingo Group, Inc.'s (NASDAQ:TIO) business as it appears the company may be on the cusp of a considerable accomplishment. Tingo Group, Inc., an agri-fintech company, operates a marketplace platform that empowers social upliftment through mobile, technology, and financial access for rural farming communities in Africa, Southeast Asia, and the Middle East. With the latest financial year loss of US$36m and a trailing-twelve-month loss of US$39m, the US$146m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Tingo Group will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Tingo Group

Expectations from some of the American Electronic analysts is that Tingo Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$1.0b in 2023. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 196%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Tingo Group given that this is a high-level summary, though, keep in mind that generally 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 prudently, with debt making up 0.6% 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 Tingo 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 Tingo Group, take a look at Tingo Group's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Historical Track Record: What has Tingo 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 Tingo 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.