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We feel now is a pretty good time to analyse QuantaSing Group Limited's (NASDAQ:QSG) business as it appears the company may be on the cusp of a considerable accomplishment. QuantaSing Group Limited provides online learning services in the People’s Republic of China. On 30 June 2023, the US$115m market-cap company posted a loss of CN¥131m for its most recent financial year. The most pressing concern for investors is QuantaSing Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for QuantaSing Group
Consensus from 2 of the American Consumer Services analysts is that QuantaSing Group is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of CN¥229m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 104% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for QuantaSing Group given that this is a high-level summary, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that QuantaSing Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of QuantaSing Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – QuantaSing Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
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Valuation: What is QuantaSing Group 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 QuantaSing Group 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 QuantaSing Group’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.