IHS Holding Limited (NYSE:IHS), a $2.5 billion market-cap company that owns, operates, and develops shared communications infrastructure across Nigeria, Sub-Saharan Africa, Latin America, and the Middle East and North Africa, is on the brink of a significant financial turnaround, according to seven American Telecom analysts. Despite a trailing-twelve-month loss of $1.5 billion, widening from its most recent financial year loss of $460 million, the company is predicted to hit breakeven just over a year from today.
Analysts anticipate the company to incur a final loss in 2023 before generating positive profits of $199 million in 2024. This projection implies an average annual growth rate of 89%, indicating high confidence from industry experts in IHS Holding's potential to turn a profit. The company's profitability timeline could be delayed if business growth falls below this rate.
While the firm is currently undergoing an investment period, there are concerns regarding its capital management due to a debt-to-equity ratio exceeding 2x. This figure significantly surpasses the typical threshold of 40% equity, adding an element of risk for investors in the loss-making company.
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