We believe now is a good time to do some analysis OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) It appears that the company may be on the verge of a remarkable performance. OneConnect Financial Technology Co., Ltd. On December 31, 2020, the company, with a market capitalization of $ 7.8 billion, posted a loss of CNY 1.4 billion for the last fiscal year. With the path to profitability being the theme for OneConnect Financial Technology investors, we decided to measure market sentiment. We’ve compiled a brief rundown of what industry analysts expected for the company, breakeven year, and implied growth rate.
Check out our latest analysis for OneConnect Financial Technology
7 of the American software analysts agree that OneConnect Financial Technology is about to break even. They anticipate the company will see a final loss in 2022 before posting a profit of CNY 565 million in 2023. Hence, the company is expected to break even in about two years. In order to meet this breakeven date, we calculated the company’s growth rate compared to the previous year. An average annual growth rate of 62% is expected, which signals a high level of confidence among analysts. If this rate turns out to be too aggressive, the company can become profitable much later than analysts predict.
NYSE: OCFT earnings per share growth on February 5, 2021
We will not be doing company-specific developments for OneConnect Financial Technology as this is a high-level summary. Be aware, however, that a high projected growth rate is not uncommon in general for a company currently making an investment.
Before we finish, there is one topic worth mentioning. OneConnect Financial Technology currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in the case of OneConnect Financial Technology is 40%. Note that a higher debt obligation increases the risk of investing in the losing company.
There are too many aspects of OneConnect Financial Technology to cover in one short article, but you can find the essentials for the business all in one place – the OneConnect Financial Technology corporate page on Simply Wall Street. We have also compiled a list of important factors to keep in mind:
- rating: What is OneConnect Financial Technology worth today? Has the future growth potential already been taken into account in the price? The intrinsic value infographic in our free research report helps illustrate whether OneConnect Financial Technology is currently being mispriced by the market.
- Management team: An experienced management team at the top strengthens our confidence in the business. See who’s on the board of OneConnect Financial Technology and what their CEO’s background is.
- Other high performing stocks: Are there other stocks that offer better prospects with proven track records? Discover our free list of these great stocks here.
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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