Analysts Expect Breakeven For OverActive Media Corp. (CVE:OAM) Before Long

We feel now is a pretty good time to analyse OverActive Media Corp.'s (CVE:OAM) business as it appears the company may be on the cusp of a considerable accomplishment. OverActive Media Corp. operates as a media, sports, and entertainment company. The CA$78m market-cap company announced a latest loss of CA$19m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on OverActive Media's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for OverActive Media

OverActive Media is bordering on breakeven, according to the 2 Canadian Entertainment analysts. They expect the company to post a final loss in 2022, before turning a profit of CA$350k in 2023. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 102% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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We're not going to go through company-specific developments for OverActive Media given that this is a high-level summary, though, bear in mind that generally 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 36% 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 too many aspects of OverActive Media to cover in one brief article, but the key fundamentals for the company can all be found in one place – OverActive Media's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Historical Track Record: What has OverActive Media'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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on OverActive Media'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.

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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.