We feel now is a pretty good time to analyse Compass, Inc.'s (NYSE:COMP) business as it appears the company may be on the cusp of a considerable accomplishment. Compass, Inc. provides real estate brokerage services in the United States. With the latest financial year loss of US$321m and a trailing-twelve-month loss of US$235m, the US$3.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Compass' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 7 of the American Real Estate analysts is that Compass is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$392k in 2025. The company is therefore projected to breakeven just over a year 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 79%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Compass' upcoming projects, 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.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 6.8% 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.

Next Steps:

There are too many aspects of Compass to cover in one brief article, but the key fundamentals for the company can all be found in one place – Compass' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is Compass 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 Compass 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 Compass'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.

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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.