Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) is expected to break even in the near future

With the business potentially at a major milestone, we thought we’d take a closer look at Chicken Soup for the Soul Entertainment, Inc. (NASDAQ: CSSE) future perspectives. Chicken Soup for the Soul Entertainment, Inc. The company with a market capitalization of US$123 million posted a loss in its most recent fiscal year of US$59 million and a loss of US$74 million in the last twelve months. months, leading to an even larger gap between loss and breakeven. As the path to profitability is the chicken soup on the minds of Soul Entertainment investors, we have decided to gauge market sentiment. In this article, we’ll cover the company’s growth expectations and when analysts expect it to be profitable.

Check out our latest review of Chicken Soup for the Soul Entertainment

Chicken Soup for the Soul Entertainment is on the verge of breaking even, according to analysts at 7 American Entertainment. They anticipate that the company will incur a final loss in 2023, before generating positive profits of US$37 million in 2024. Therefore, the company is expected to break even approximately 2 years from today. To meet this break-even date, we calculate the rate at which the company must grow year over year. It turns out that an average annual growth rate of 70% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqGM: CSSE Earnings Per Share Growth Oct 12, 2022

We won’t discuss company-specific developments for Chicken Soup For Soul Entertainment as this is a high-level summary, but keep in mind that a high projected growth rate is not unusual for a company in general. which is currently in an investment period.

One thing we’d like to bring to light with Chicken Soup for the Soul Entertainment is its 130% debt-to-equity ratio. Debt should generally not exceed 40% of equity, and the company has significantly exceeded this limit. A higher level of debt requires tighter capital management, which increases the risk of investing in the losing company.

Next steps:

This article is not meant to be an exhaustive review of Chicken Soup for the Soul Entertainment, so if you are interested in understanding the company on a deeper level, take a look at the Chicken Soup for the Soul Entertainment company page on Simply Wall St. We have also compiled a list of essential factors that you should further investigate:

  1. Valuation: How much is Chicken Soup for the Soul Entertainment worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize if Chicken Soup for Soul Entertainment is currently mispriced in the market.
  2. Management team: An experienced management team at the helm increases our confidence in the business – take a look at who sits at Chicken Soup for Soul Entertainment’s board of directors and the CEO’s background.
  3. Other High Yield Stocks: Are there other stocks that provide better prospects with proven track records? Browse our free list of these great stocks here.

This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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find out if Chicken Soup for the Soul Entertainment is potentially overvalued or undervalued by consulting our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, internal transactions and financial health.

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