When Will Securitize Corp. (NYSE:SECZ) Turn A Profit?

We feel now is a pretty good time to analyse Securitize Corp.'s (NYSE:SECZ) business as it appears the company may be on the cusp of a considerable accomplishment. Securitize Corp. provides a platform for tokenizing and managing digital asset securities. The US$1.3b market-cap company posted a loss in its most recent financial year of US$44m and a latest trailing-twelve-month loss of US$46m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Securitize's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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 2 industry analysts covering Securitize, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$41m in 2027. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Securitize's growth isn’t the focus of this broad overview, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Securitize

One thing we would like to bring into light with Securitize is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Historical Track Record: What has Securitize'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Securitize'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.

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.