With the business potentially at an important milestone, we thought we'd take a closer look at CC Neuberger Principal Holdings II's (NYSE:PRPB) future prospects. CC Neuberger Principal Holdings II does not have significant operations. The US$1.1b market-cap company posted a loss in its most recent financial year of US$2.7m and a latest trailing-twelve-month loss of US$13m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which CC Neuberger Principal Holdings II will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.
View our latest analysis for CC Neuberger Principal Holdings II
Expectations from some of the American Capital Markets analysts is that CC Neuberger Principal Holdings II is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$97m in 2022. Therefore, the company is expected to breakeven roughly 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 101% 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.
We're not going to go through company-specific developments for CC Neuberger Principal Holdings II given that this is a high-level summary, though, take into account that by and large 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 CC Neuberger Principal Holdings II 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.
This article is not intended to be a comprehensive analysis on CC Neuberger Principal Holdings II, so if you are interested in understanding the company at a deeper level, take a look at CC Neuberger Principal Holdings II's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has CC Neuberger Principal Holdings II's 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 CC Neuberger Principal Holdings II'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.
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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.