With the business potentially at an important milestone, we thought we'd take a closer look at Staffing 360 Solutions, Inc.'s (NASDAQ:STAF) future prospects. Staffing 360 Solutions, Inc., a staffing company, engages in the acquisition of staffing companies in the United States and the United Kingdom. With the latest financial year loss of US$24m and a trailing-twelve-month loss of US$19m, the US$33m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Staffing 360 Solutions will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to some industry analysts covering Staffing 360 Solutions, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$14m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 90% 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.NasdaqCM:STAF Earnings Per Share Growth July 5th 2021
Given this is a high-level overview, we won’t go into details of Staffing 360 Solutions' upcoming projects, but, 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 we would like to bring into light with Staffing 360 Solutions is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
This article is not intended to be a comprehensive analysis on Staffing 360 Solutions, so if you are interested in understanding the company at a deeper level, take a look at Staffing 360 Solutions' company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:
- Historical Track Record: What has Staffing 360 Solutions' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Staffing 360 Solutions' 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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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