Yahoo Finance When Will Sabre Corporation (NASDAQ:SABR) Breakeven?
Sabre Corporation (NASDAQ:SABR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sabre Corporation, together with its subsidiaries, operates as software and technology company for travel industry in the United States, Europe, Asia-Pacific, and internationally. With the latest financial year loss of US$542m and a trailing-twelve-month loss of US$510m, the US$1.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Sabre's investors mind, we've decided to gauge market sentiment. 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 Sabre
Consensus from 7 of the American Hospitality analysts is that Sabre is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$56m in 2025. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 76% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Sabre given that this is a high-level summary, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Sabre is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Sabre to cover in one brief article, but the key fundamentals for the company can all be found in one place – Sabre's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Valuation: What is Sabre 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 Sabre 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 Sabre’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.
