Global-E Online Ltd.'s (NASDAQ:GLBE) Shift From Loss To Profit
With the business potentially at an important milestone, we thought we'd take a closer look at Global-E Online Ltd.'s (NASDAQ:GLBE) future prospects. 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. The US$6.3b market-cap company’s loss lessened since it announced a US$134m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$110m, as it approaches breakeven. As path to profitability is the topic on Global-E Online's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Global-E Online
Global-E Online is bordering on breakeven, according to the 13 American Multiline Retail analysts. They expect the company to post a final loss in 2025, before turning a profit of US$61m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 103% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Global-E Online given that this is a high-level summary, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Global-E Online currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
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 key factors you should further research:
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.
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.
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.