Loss-Making Perfect Corp.NYSE:PERF) Set To Breakeven
Perfect Corp. (NYSE:PERF) could be close to achieving a significant achievement in its business, so let us shine some light on this company. Perfect Corp. offers SaaS artificial intelligence, augmented reality beauty and fashion technology business solutions. With the latest financial year loss of US$157m and a trailing-twelve-month loss of US$125m, the US$834m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Perfect’s path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Perfect
The consensus of 3 American Software analysts is that Perfect may soon break even. They predict that the company will suffer a final loss in 2021 and then generate positive profits of US$34m 2022. According to the company’s forecasts, it will breakeven in a year or less. What is the growth rate required to achieve the consensus forecasts of breakeven by 2022 for the company? Based on analyst estimates, the company is expected to grow an average of 83% per year. That’s quite optimistic! The company could become profitable sooner than the analysts expect if this rate proves to be too aggressive.
Perfect’s specific developments are not covered here.
Perfect has negative equity currently on its balance sheets, something we want to make clear. This is sometimes due to accounting techniques that used to account for accumulated losses in prior years. These liabilities are carried forward until the loss cancels out. Sometimes, the losses are only visible on paper, but it is possible to see them as a red flag.
Next Steps
This article is not meant to be an exhaustive analysis of Perfect. However, if you are interested understanding Perfect more deeply, please see Perfect’s company page on Simply Wall St. A complete list of factors that are relevant to your search is also available:
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Valuation: How much is Perfect worth today Does the future growth potential have been already considered in the price? The intrinsic value infographic in our free research report It helps to visualize whether Perfect is currently priced too low by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Perfect’s board and the CEO’s background.
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Other high-performing stocks: Is there another stock that offers better prospects and has a proven track record? Take a look at our free list of these great stocks here.
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This article by Simply Wall St has a general nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. It is not a recommendation not to buy or sell any stocks and does not consider your financial situation or objectives. We strive to deliver long-term focused analysis that is based on fundamental data. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St holds no position in any of the stocks mentioned.
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