When Will IHS Holding Limited (NYSE:IHS) Breakeven?

We feel now is a pretty good time to analyse IHS Holding Limited's (NYSE:IHS) business as it appears the company may be on the cusp of a considerable accomplishment. 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$2.4b, moving it further away from breakeven. The most pressing concern for investors is IHS Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for IHS Holding

Consensus from 7 of the American Telecom analysts is that IHS Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$73m in 2025. The company is therefore projected to breakeven just over a year from today. 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 101%, which is rather optimistic! 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, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with IHS Holding is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of IHS Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – IHS Holding's company page on Simply Wall St. We've also compiled a list of pertinent factors 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.