When Can We Expect A Profit From Global-e Online Ltd. (NASDAQ:GLBE)?

We feel now is a pretty good time to analyse Global-e Online Ltd.’s (NASDAQ:GLBE) business as it appears the company may be on the cusp of a considerable accomplishment. Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. On 31 December 2023, the US$5.5b market-cap company posted a loss of US$134m for its most recent financial year. The most pressing concern for investors is Global-e Online’s path to profitability – when will it breakeven? 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 Global-e Online

Consensus from 13 of the American Multiline Retail analysts is that Global-e Online is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$32m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 77%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqGS:GLBE Earnings Per Share Growth February 23rd 2024

Given this is a high-level overview, we won’t go into details of Global-e Online’s upcoming projects, however, 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 Global-e Online has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Global-e Online to cover in one brief article, but the key fundamentals for the company can all be found in one place – Global-e Online’s company page on Simply Wall St. We’ve also put together a list of pertinent factors you should further examine:

  1. Valuation: What is Global-e Online 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 Global-e Online is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Global-e Online’s board and the CEO’s background.
  3. 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.

Valuation is complex, but we’re helping make it simple.

Find out whether Global-e Online is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

Read More: When Can We Expect A Profit From Global-e Online Ltd. (NASDAQ:GLBE)?

2024-02-23 12:03:21

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