IHS Holding Limited (NYSE:IHS) On The Verge Of Breaking Even

IHS Holding Limited (NYSE:IHS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. IHS Holding Limited, together with its subsidiaries, develops, owns, and operates shared communications infrastructure in Nigeria, Sub-Saharan Africa, the Middle East and North Africa, and Latin America. The company’s loss has recently broadened since it announced a US$2.0b loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.3b, moving it further away from breakeven. Many investors are wondering about the rate at which IHS Holding 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.

See our latest analysis for IHS Holding

IHS Holding is bordering on breakeven, according to the 7 American Telecom analysts. They expect the company to post a final loss in 2024, before turning a profit of US$79m in 2025. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 88% year-on-year, on average, 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.

We're not going to go through company-specific developments for IHS Holding given that this is a high-level summary, however, take into account that generally 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. IHS Holding currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of IHS Holding 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 IHS Holding, take a look at IHS Holding's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Valuation: What is IHS Holding 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 IHS Holding 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 IHS Holding’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.