Yahoo Finance RESAAS Services Inc’s (CVE:RSS) Shift From Loss To Profit
RESAAS Services Inc’s (CVE:RSS): RESAAS Services Inc. develops cloud-based social business platform for the real estate services industry. The company’s loss has recently broadened since it announced a -CA$7.61m loss in the full financial year, compared to the latest trailing-twelve-month loss of -CA$9.09m, moving it further away from breakeven. As path to profitability is the topic on RSS’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for RSS, its year of breakeven and its implied growth rate.
Check out our latest analysis for RESAAS Services
According to the industry analysts covering RSS, breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of CA$1.32m in 2020. RSS is therefore projected to breakeven around a few months from now. In order to meet this breakeven date, I calculated the rate at which RSS must grow year-on-year. It turns out an average annual growth rate of 70.10% is expected, which signals high confidence from analysts. 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 RSS given that this is a high-level summary, however, 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 aspect worth mentioning. RSS has managed its capital prudently, with debt making up 0.79% of equity. This means that RSS 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 key fundamentals of RSS 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 RSS, take a look at RSS’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should look at:
Valuation: What is RSS 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 RSS 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 RESAAS Services’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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
