Breakeven Is Near for comScore, Inc. (NASDAQ:SCOR)

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comScore, Inc. (NASDAQ:SCOR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. comScore, Inc. operates as an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms in the United States, Europe, Latin America, Canada, and internationally. With the latest financial year loss of US$96m and a trailing-twelve-month loss of US$88m, the US$59m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which comScore will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for comScore

According to the 3 industry analysts covering comScore, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.7m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 117%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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NasdaqGS:SCOR Earnings Per Share Growth August 6th 2024

Given this is a high-level overview, we won’t go into details of comScore's upcoming projects, however, take into account that generally 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 6.7% 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.

Next Steps:

There are too many aspects of comScore to cover in one brief article, but the key fundamentals for the company can all be found in one place – comScore's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

  1. Valuation: What is comScore 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 comScore is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on comScore’s board and the CEO’s background.

  3. 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.