Laureate Education, Inc. (NASDAQ:LAUR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. The US$1.8b market-cap company's loss lessened since it announced a US$295m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$20m, as it approaches breakeven. The most pressing concern for investors is Laureate Education's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Laureate Education

Laureate Education is bordering on breakeven, according to the 3 American Consumer Services analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$71m in 2022. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 78%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Laureate Education given that this is a high-level summary, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 9.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Laureate Education 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 Laureate Education, take a look at Laureate Education's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Laureate Education 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 Laureate Education 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 Laureate Education'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.