We feel now is a pretty good time to analyse Omni Bridgeway Limited's (ASX:OBL) business as it appears the company may be on the cusp of a considerable accomplishment. Omni Bridgeway Limited engages in investing in litigation and dispute resolution and enforcement matters in Australia, the United States, Canada, Asia, Europe, the Middle East, and Africa. The AU$1.2b market-cap company announced a latest loss of AU$46m on 30 June 2022 for its most recent financial year result. The most pressing concern for investors is Omni Bridgeway'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 Omni Bridgeway
Omni Bridgeway is bordering on breakeven, according to the 3 Australian Diversified Financial analysts. They expect the company to post a final loss in 2022, before turning a profit of AU$69m in 2023. 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 105%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won't go into details of Omni Bridgeway's upcoming projects, though, take into account that generally 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 The company has managed its capital judiciously, with debt making up 20% 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.
There are too many aspects of Omni Bridgeway to cover in one brief article, but the key fundamentals for the company can all be found in one place - Omni Bridgeway's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Historical Track Record: What has Omni Bridgeway'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 Omni Bridgeway'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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