Yahoo Finance Breakeven On The Horizon For Clarivate Analytics Plc (NYSE:CCC)
Clarivate Analytics Plc's (NYSE:CCC): Clarivate Analytics Plc, an information services and analytics company, provides structured information and analytics for discovery, protection, and commercialization of scientific research, innovations, and brands. The company’s loss has recently broadened since it announced a -US$211.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$225.7m, moving it further away from breakeven. Many investors are wondering the rate at which CCC will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for CCC’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Clarivate Analytics
CCC is bordering on breakeven, according to the 5 Professional Services analysts. They expect the company to post a final loss in 2020, before turning a profit of US$82m in 2021. CCC is therefore projected to breakeven around a few months from now. What rate will CCC have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 77%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for CCC given that this is a high-level summary, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one issue worth mentioning. CCC currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in CCC’s case is 92%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of CCC which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CCC, take a look at CCC’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further examine:
Valuation: What is CCC 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 CCC is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clarivate Analytics’s board and the CEO’s back ground.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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