Market Sentiment Around Loss-Making nCino, Inc. (NASDAQ:NCNO)
With the business potentially at an important milestone, we thought we'd take a closer look at nCino, Inc.'s () future prospects. nCino, Inc., a software-as-a-service company, provides software solutions to financial institutions in the United States, the United Kingdom, and internationally. The US$3.0b market-cap company posted a loss in its most recent financial year of US$38m and a latest trailing-twelve-month loss of US$29m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which nCino 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.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
According to the 15 industry analysts covering nCino, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$45m in 2028. Therefore, the company is expected to breakeven roughly 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 96% is expected, which is rather optimistic! 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 nCino's upcoming projects, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for nCino
Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 19% 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.
This article is not intended to be a comprehensive analysis on nCino, so if you are interested in understanding the company at a deeper level, take a look at nCino's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:
Valuation: What is nCino 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 nCino is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on nCino's 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
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