Liberty Latin America Ltd’s (NASDAQ:LILA): Liberty Latin America Ltd. provides various telecommunications services. On 31 December 2017, the US$3.64B market-cap posted a loss of -US$778.10M for its most recent financial year. As path to profitability is the topic on LILA’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for LILA, its year of breakeven and its implied growth rate.

View our latest analysis for Liberty Latin America

According to the industry analysts covering LILA, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of US$15.18M in 2018. So, LILA is predicted to breakeven approximately a few months from now. How fast will LILA have to grow each year in order to reach the breakeven point by 2018? Working backwards from analyst estimates, it turns out that they expect the company to grow 125.22% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, I won’t go into detail the detail of LILA’s upcoming projects, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with LILA is its debt-to-equity ratio of 137.57%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in LILA’s case, it has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of LILA to cover in one brief article, but the key fundamentals for the company can all be found in one place – LILA’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should further examine:

1. Valuation: What is LILA 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 LILA 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 Liberty Latin America’s board and the CEO’s back ground.

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.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.