BingEx Limited (NASDAQ:FLX) Is About To Turn The Corner

We feel now is a pretty good time to analyse BingEx Limited’s (NASDAQ:FLX) business as it appears the company may be on the cusp of a considerable accomplishment. BingEx Limited, through its subsidiaries, engages in the provision of on-demand dedicated courier services under the FlashEx brand name in the People’s Republic of China. With the latest financial year loss of CN¥260m and a trailing-twelve-month loss of CN¥210m, the US$215m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which BingEx will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company’s growth and when analysts expect it to become profitable.

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Expectations from some of the American Logistics analysts is that BingEx is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of CN¥88m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving BingEx’s growth isn’t the focus of this broad overview, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for BingEx

One thing we’d like to point out is that BingEx has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

There are too many aspects of BingEx to cover in one brief article, but the key fundamentals for the company can all be found in one place – BingEx’s company page on Simply Wall St. We’ve also compiled a list of key aspects you should further research:

1. Historical Track Record: What has BingEx’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 BingEx’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.