Yahoo Finance Breakeven Is Near for Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Marathon Digital Holdings, Inc. operates as a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets in United States. The US$745m market-cap company posted a loss in its most recent financial year of US$36m and a latest trailing-twelve-month loss of US$269m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Marathon Digital Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Marathon Digital Holdings
Consensus from 7 of the American Software analysts is that Marathon Digital Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$21m in 2023. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 97% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Marathon Digital Holdings given that this is a high-level summary, however, keep in mind that typically 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 issue worth mentioning. Marathon Digital Holdings currently has a debt-to-equity ratio of 125%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Marathon Digital Holdings, so if you are interested in understanding the company at a deeper level, take a look at Marathon Digital Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is Marathon Digital Holdings 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 Marathon Digital Holdings 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 Marathon Digital Holdings’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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
