With the business potentially at an important milestone, we thought we'd take a closer look at Paysafe Limited's (NYSE:PSFE) future prospects. Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. With the latest financial year loss of US$20m and a trailing-twelve-month loss of US$13m, the US$1.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Paysafe's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Consensus from 8 of the American Diversified Financial analysts is that Paysafe is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$34m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Paysafe's growth isn't the focus of this broad overview, but, bear 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.

Before we wrap up, there's one issue worth mentioning. Paysafe currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

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

1. Historical Track Record: What has Paysafe'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 Paysafe'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com