Yahoo Finance Analysts Are Optimistic We'll See A Profit From Perfect Corp. (NYSE:PERF)
We feel now is a pretty good time to analyse Perfect Corp.'s (NYSE:PERF) business as it appears the company may be on the cusp of a considerable accomplishment. Perfect Corp. provides SaaS artificial intelligence (AI) and augmented reality (AR) beauty, and fashion tech business solutions. The company’s loss has recently broadened since it announced a US$162m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$186m, moving it further away from breakeven. The most pressing concern for investors is Perfect'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.
Check out our latest analysis for Perfect
According to the 3 industry analysts covering Perfect, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$3.4m 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 166%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Perfect's growth isn’t the focus of this broad overview, 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.
Before we wrap up, there’s one aspect worth mentioning. Perfect currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Perfect to cover in one brief article, but the key fundamentals for the company can all be found in one place – Perfect's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Historical Track Record: What has Perfect'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 Perfect'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.
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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.
