Betmakers Technology Group Ltd’s (ASX:BET) Profit Outlook

ASX:BET) business as it appears the company may be on the cusp of a considerable accomplishment. Betmakers Technology Group Ltd, together with its subsidiaries, provides racing data, analytics, and trading solutions in Australia. The AU$259m market-cap company posted a loss in its most recent financial year of AU$3.6m and a latest trailing-twelve-month loss of AU$2.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Betmakers Technology Group’s path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company’s growth and when analysts expect it to become profitable.” data-reactid=”28″>We feel now is a pretty good time to analyse Betmakers Technology Group Ltd’s (ASX:BET) business as it appears the company may be on the cusp of a considerable accomplishment. Betmakers Technology Group Ltd, together with its subsidiaries, provides racing data, analytics, and trading solutions in Australia. The AU$259m market-cap company posted a loss in its most recent financial year of AU$3.6m and a latest trailing-twelve-month loss of AU$2.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Betmakers Technology Group’s path to profitability – when will it 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 Betmakers Technology Group ” data-reactid=”29″> See our latest analysis for Betmakers Technology Group

According to the 2 industry analysts covering Betmakers Technology Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of AU$2.9m in 2021. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 118% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

We’re not going to go through company-specific developments for Betmakers Technology Group given that this is a high-level summary, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Betmakers Technology Group has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

Betmakers Technology Group’s company page on Simply Wall St. We’ve also compiled a list of pertinent aspects you should look at:” data-reactid=”50″>There are key fundamentals of Betmakers Technology Group 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 Betmakers Technology Group, take a look at Betmakers Technology Group’s company page on Simply Wall St. We’ve also compiled a list of pertinent aspects you should look at:

  1. Valuation: What is Betmakers Technology Group 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 Betmakers Technology Group 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 Betmakers Technology Group’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.

Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.” data-reactid=”55″>This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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