Kanzhun Limited (NASDAQ:BZ) is about to turn from loss to profit
We think it’s a good time to analyze Kanzhun Limited (NASDAQ:BZ) As it seems, the company may be on the verge of a huge achievement. Kanzhun Limited operates an online recruitment platform, BOSS Zhipin, assists the recruitment process between job seekers and employers for businesses and corporations in the People’s Republic of China. The US$11 billion market cap company posted a loss in its last fiscal year of 1.2 billion Canadian yen and a trailing 12-month loss of 2.1 billion domestic yen, which resulted in an even wider gap between the loss and the break-even point. The most pressing concern for investors is Kanzhun’s path to profitability – when will it break even? Below, we’ll provide a high-level summary of industry analysts’ expectations for the company.
The consensus of 7 US interactive media and services analysts is that Kanzhun is close to breaking even. They expect the company to post a terminal loss in 2021, before making a profit of 1.1 billion Canadian yen in 2022. The company should therefore break even in about 12 months or less. We calculated the rate at which the business must grow to reach the consensus forecast predicting breakeven within 12 months. It turns out that an average annual growth rate of 116% is expected, which is extremely sustained. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Developments underlying Kanzhun’s growth are not the focus of this general overview, but keep in mind that a high expected growth rate is generally not unusual for a company currently going through a period of investment.
One thing we would like to point out is that Kanzhun has zero debt on its balance sheet, which is quite unusual for a cash-intensive growth company, which typically has high debt to equity ratios. This means that the business has operated solely on its equity investment and has no debt. This aspect reduces the risk associated with investing in the loss-making company.
There are too many aspects of Kanzhun to cover in a brief article, but the company’s fundamentals can all be found in one place – Kanzhun’s company page on Simply Wall St. We’ve also compiled a list of key aspects you should further research:
- Evaluation: What is Kanzhun worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Kanzhun is currently being mispriced by the market.
- Management team: An experienced management team at the helm boosts our confidence in the company – take a look at who sits on Kanzhun’s board and the CEO’s background.
- Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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