Breakeven Is Near for BingEx Limited (NASDAQ:FLX)

With the business potentially at an important milestone, we thought we'd take a closer look at BingEx Limited's (NASDAQ:FLX) future prospects. BingEx Limited, through its subsidiaries, engages in the provision of on-demand dedicated courier services under the FlashEx brand name in the People’s Republic of China. With the latest financial year loss of CN¥260m and a trailing-twelve-month loss of CN¥267m, the US$231m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on BingEx's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Expectations from some of the American Logistics analysts is that BingEx is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥88m in 2025. 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 89%, 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 BingEx given that this is a high-level summary, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for BingEx

Before we wrap up, there’s one aspect worth mentioning. BingEx currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of BingEx to cover in one brief article, but the key fundamentals for the company can all be found in one place – BingEx's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Historical Track Record: What has BingEx'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 BingEx'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.