The shift of Mawson Infrastructure Group, Inc. (NASDAQ: MIGI) from loss to profit
With the company potentially at an important milestone, we thought we would take a closer look Mawson Infrastructure Group, Inc. (NASDAQ: MIGI) future prospects. Mawson Infrastructure Group Inc., a digital infrastructure provider, operates in the cryptocurrency mining and digital asset infrastructure business in the United States and Australia. The company’s loss has widened recently since it reported a full-year loss of US $ 5.0 million, compared to the last year-over-year loss of US $ 47 million. , which takes it even further from the break-even point. Many investors question the rate at which Mawson Infrastructure Group will make profits, the big question being “when does the company break even?” We’ve put together a brief rundown of industry analysts’ expectations for the company, its breakeven year, and its implied growth rate.
See our latest analysis for Mawson Infrastructure Group
Mawson Infrastructure Group is close to breaking even, according to some US software analysts. They expect the company to make a terminal loss in 2021, before making a profit of $ 102 million in 2022. As a result, the company is expected to break even in just over a year. How fast will the company have to grow from one year to the next to reach equilibrium on that date? Using a line of best fit, we calculated an average annual growth rate of 168%, indicating a high level of analyst confidence. If the business grows at a slower pace, it will become profitable later than expected.
We will not go over company specific developments for Mawson Infrastructure Group as this is a high level summary, however, be aware that overall a rate of High expected growth is not unusual for a business that is currently undergoing a period of investment.
One thing we want to stress is that the company has managed its capital wisely, with debt accounting for 3.4% of equity. This means that it has mainly financed its operations from equity and its low debt reduces the risk of investing in the loss-making company.
There are some fundamental principles of Mawson Infrastructure Group that are not covered in this article, but we must again stress that this is only a basic overview. For a more complete overview of Mawson Infrastructure Group, check out Mawson Infrastructure Group’s company page on Simply Wall St. We have also compiled a list of important factors that you should take a closer look at:
- Evaluation: What is Mawson Infrastructure Group worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Mawson Infrastructure Group is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the Mawson Infrastructure Group board members and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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