Will New Age Beverage Continue to Rise
NewAge, Inc. (NASDAQ:NBEV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. NewAge, Inc. develops, markets, sells, and distributes healthy products in the United States, Japan, China, and internationally. The US$204m market-cap company posted a loss in its most recent financial year of US$39m and a latest trailing-twelve-month loss of US$7.1m shrinking the gap between loss and breakeven. As path to profitability is the topic on NewAge's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for NewAge
Consensus from 2 of the American Beverage analysts is that NewAge is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$13m in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 131% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won't go into details of NewAge's upcoming projects, but, bear in mind that typically 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 7.9% 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 NewAge 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 NewAge, take a look at NewAge's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
- Historical Track Record: What has NewAge'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NewAge's board and the CEO's background.
- 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.
Valuation is complex, but we're helping make it simple.
Find out whether NewAge is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
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Source: https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-nbev/newage/news/when-can-we-expect-a-profit-from-newage-inc-nasdaqnbev
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