Since the deal may be at an important milestone, we thought we’d take a closer look Chicken Soup for Soul Entertainment, Inc. (NASDAQ:CSSE) future prospects. Chicken Soup for Soul Entertainment, Inc. The company, with a market capitalization of $123 million, posted a loss of $59 million in its most recent fiscal year and a loss of $74 million for the trailing twelve months, resulting in an even larger gap between them resulted in loss and breakeven. With the road to profitability being the chicken soup theme for Soul Entertainment investors, we decided to gauge market sentiment. In this article, we will discuss expectations for the company’s growth and when analysts think it will become profitable.
Check out our latest analysis for Chicken Soup for the Soul Entertainment
Chicken Soup for the Soul Entertainment is close to breaking even, according to analysts at 7 American Entertainment. They project that the company will incur a definitive loss in 2023 before turning positive earnings of $37 million in 2024. So the company is expected to break even in about two years from now. To meet that break-even date, we calculated the rate at which the company must grow year over year. It turns out that a compound annual growth rate of 70% is expected, which is extremely lively. If this price proves too aggressive, the company may become profitable much later than analysts are predicting.
We will not go into company specific developments for Chicken Soup for the Soul Entertainment as this is a high level summary, but keep in mind that a high projected growth rate by and large is not unusual for a company currently in an investing phase.
One thing we want to emphasize about Chicken Soup for the Soul Entertainment is its debt-to-equity ratio of 130%. Ordinarily, debt shouldn’t exceed 40% of your equity, and the company has significantly exceeded that. Higher debt requires tighter capital management, increasing the risk of investing in the loss-making company.
This article is not intended to be a comprehensive analysis of Chicken Soup for the Soul Entertainment. So if you’re interested in understanding the company on a deeper level, take a look at the Chicken Soup for the Soul Entertainment company page on Simply Wall St. We’ve also compiled a list of key factors for you to investigate further should:
- valuation: What is Chicken Soup for the Soul Entertainment worth today? Is the future growth potential already priced in? The intrinsic value infographic in our free research report helps visualize if Chicken Soup for the Soul Entertainment is currently being mispriced by the market.
- Leadership team: An experienced management team at the helm strengthens our confidence in the company – look at who sits on the Soul Entertainment board at Chicken Soup and what the background of the CEO is.
- Other high-performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.
This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
The assessment is complex, but we help to simplify it.
find out if Chicken soup for soul entertainment may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
Check out the free analysis