We feel now is a pretty good time to analyse Sabre Corporation's (NASDAQ:SABR) business as it appears the company may be on the cusp of a considerable accomplishment. Sabre Corporation, through its subsidiaries, provides software and technology solutions for the travel industry worldwide. With the latest financial year loss of US$456m and a trailing-twelve-month loss of US$610m, the US$1.6b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Sabre 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.

View our latest analysis for Sabre

Consensus from 8 of the American Hospitality analysts is that Sabre is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$203m in 2025. So, the company is predicted 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 70% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

One thing we would like to bring into light with Sabre 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Sabre which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Sabre, take a look at Sabre's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Valuation: What is Sabre 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 Sabre 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 Sabre’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.

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.