N-able, Inc. (NYSE: NABL) found a path to profitability
N-able, Inc. (NYSE: NABL) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. N-able, Inc. provides cloud-based software solutions for Managed Service Providers (MSPs). With the latest loss of US $ 7.2 million and year-over-year loss of US $ 15 million, the US $ 2.2 billion market-cap company amplified its loss by moving further away from its target balance. As the path to profitability is the topic of concern for N-able investors, we decided to assess market sentiment. In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
Check out our latest analysis for N-able
The consensus of 6 of US software analysts is that N-able is on the verge of breaking even. They expect the company to make a terminal loss in 2020, before making a profit of US $ 14 million in 2021. So the company should break even in about a year or less! We calculated the rate at which the company must grow to reach the consensus forecast predicting breakeven within 12 months. It turns out that an average annual growth rate of 87% is expected, indicating high confidence among analysts. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level overview, we will not go into details of N-able’s upcoming projects, but be aware that a high predicted growth rate is usually not not unusual for a company that is currently going through a period of investment.
One thing we would like to highlight with N-able is its relatively high level of debt. As a rule of thumb, debt should not exceed 40% of your equity, which in the case of N-able is 48%. Note that higher debt increases the risk of investing in the loss-making business.
There are too many aspects of N-able to cover in a short article, but the fundamentals of the business can all be found in one place – the N-able company page on Simply Wall St. We’ve also compiled a list of important aspects that you should take a closer look at:
- Evaluation: What is N-able worth today? Has the potential for future growth already been factored into the price? Our free research report’s intrinsic value infographic helps to visualize whether N-able is currently poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on N-able’s board and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.