We feel now is a pretty good time to analyse The OLB Group, Inc.’s (NASDAQ:OLB) business as it appears the company may be on the cusp of a considerable accomplishment. The OLB Group, Inc. provides integrated financial and transaction processing services for small- and mid-sized merchants in the United States. The US$22m market-cap company announced a latest loss of US$5.0m on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which OLB Group 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 OLB Group
According to some industry analysts covering OLB Group, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$18m in 2023. So, the company is predicted to breakeven just over a year from now. 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 131% 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.
Given this is a high-level overview, we won’t go into details of OLB Group’s upcoming projects, 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 we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 4.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on OLB Group, so if you are interested in understanding the company at a deeper level, take a look at OLB Group’s company page on Simply Wall St. We’ve also compiled a list of key factors you should further examine:
Valuation: What is OLB Group 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 OLB Group 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 OLB Group’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.
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