In This Article:
With the business potentially at an important milestone, we thought we'd take a closer look at Clarivate Plc's (NYSE:CLVT) future prospects. Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. On 31 December 2024, the US$2.8b market-cap company posted a loss of US$668m for its most recent financial year. Many investors are wondering about the rate at which Clarivate 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.
According to the 7 industry analysts covering Clarivate, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$93m in 2027. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 94%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Clarivate's growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Check out our latest analysis for Clarivate
Before we wrap up, there’s one issue worth mentioning. Clarivate currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Clarivate's case is 87%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Clarivate to cover in one brief article, but the key fundamentals for the company can all be found in one place – Clarivate's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
-
Valuation: What is Clarivate 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 Clarivate is currently mispriced by the market.
-
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clarivate’s board and the CEO’s background.
-
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.