Keypath Education International, Inc. (ASX: KED): is it close to breaking even?

We think now is the right time to analyze Keypath Education International, Inc. (ASX: KED) because it looks like the company is on the cusp of a huge accomplishment. Keypath Education International, Inc. designs, develops and delivers career relevant online education solutions in North America, Australia, Malaysia, UK and overseas. On June 30, 2021, the company with a market capitalization of AU $ 583 million recorded a loss of US $ 79 million for its most recent financial year. Many investors wonder about Keypath Education International’s rate of profit, the big question being “when does the company break even?” We’ve put together a brief rundown of industry analysts’ expectations for the company, its breakeven year, and its implied growth rate.

Check out our latest review for Keypath Education International

According to some industry analysts covering Keypath Education International, the breakeven point is near. They predict that the company will experience a terminal loss in 2023, before generating positive profits of US $ 5.8 million in 2024. The company is therefore expected to break even in about 3 years. How fast will the company have to grow from one year to the next to reach equilibrium on that date? Using a line of best fit, we calculated an average annual growth rate of 92%, indicating a high level of analyst confidence. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.

ASX Earnings Per Share Growth: KED October 7, 2021

Since this is a high-level overview, we will not go into details of Keypath Education International’s upcoming projects, however, keep in mind that a high predicted growth rate is not expected. is generally not unusual for a company that is currently going through a period of investment.

Before concluding, there is one aspect that deserves to be mentioned. Keypath Education International currently has no debt on its balance sheet, which is quite unusual for a growing cash-intensive business, which typically has a high level of debt to equity. The company currently operates solely on financing from its shareholders and has no debt, reducing concerns about repayments and making it a less risky investment.

Next steps:

There are key fundamentals of Keypath Education International that are not covered in this article, but we must again stress that this is only a basic overview. For a more comprehensive overview of Keypath Education International, check out Keypath Education International’s company page on Simply Wall St. We have also put together a list of key aspects you should take a closer look at:

  1. Historical review: How has Keypath Education International performed in the past? Go deeper into the background analysis and take a look at the free visual representations of our analysis for clarity.
  2. Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on the board of Keypath Education International and the CEO’s background.
  3. 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 documents. Simply Wall St has no position in the mentioned stocks.

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