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With the business potentially at an important milestone, we thought we'd take a closer look at comScore, Inc.'s (NASDAQ:SCOR) future prospects. 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. The company’s loss has recently broadened since it announced a US$96m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$109m, moving it further away from breakeven. As path to profitability is the topic on comScore's investors mind, we've decided to gauge market sentiment. 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
comScore is bordering on breakeven, according to the 2 American Media analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$5.8m in 2026. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is extremely buoyant. 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, we won’t go into details of comScore's upcoming projects, though, bear in mind that typically 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 4.9% 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 key fundamentals of comScore which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at comScore, take a look at comScore's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
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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.
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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 comScore’s board and the CEO’s background.
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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.
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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.