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Quisitive Technology Solutions, Inc. (CVE:QUIS): Is Breakeven Near?

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We feel now is a pretty good time to analyse Quisitive Technology Solutions, Inc.'s (CVE:QUIS) business as it appears the company may be on the cusp of a considerable accomplishment. Quisitive Technology Solutions, Inc., through its subsidiaries, provides Microsoft solutions primarily in North America. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$7.8m, the CA$502m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Quisitive Technology Solutions' 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 Quisitive Technology Solutions

According to the 7 industry analysts covering Quisitive Technology Solutions, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$6.3m in 2023. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, 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.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Quisitive Technology Solutions' growth isn’t the focus of this broad overview, however, 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 issue worth mentioning. Quisitive Technology Solutions currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Quisitive Technology Solutions' case is 42%. 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 Quisitive Technology Solutions, so if you are interested in understanding the company at a deeper level, take a look at Quisitive Technology Solutions' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

  1. Valuation: What is Quisitive Technology Solutions 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 Quisitive Technology Solutions is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Quisitive Technology Solutions’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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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