Market sentiment around Doma Holdings Inc. (NYSE:DOMA)

We think it’s a good time to analyze Doma Holdings Inc. (NYSE:DOMA) As it seems, the company may be on the verge of a huge achievement. Doma Holdings Inc. provides title, escrow and settlement services to owners, lenders, title agents and real estate professionals. With the last loss of $35 million in the fiscal year and a loss of $78 million in the last twelve months, the $1.2 billion market capitalization company has magnified its loss by moving further away. of its objective of balance. Many investors are wondering about the rate at which Doma Holdings will turn a profit, with the big question being “when will the company break even?” In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.

See our latest analysis for Doma Holdings

According to the 2 industry analysts covering Doma Holdings, the consensus is that the break-even point is near. They forecast the business to incur a terminal loss in 2022, before generating positive profits of US$30 million in 2023. Therefore, the business is expected to break even in just over a year from today. In order to meet this balance date, we have calculated the rate at which the company must grow from one year to the next. It turns out that an average annual growth rate of 81% 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.

NYSE: DOMA earnings per share growth as of January 30, 2022

Developments underlying Doma Holdings’ growth are not the focus of this general overview, however, consider that in general, a high expected growth rate is not unusual for a company currently going through a investment period.

Before concluding, there is one aspect worth mentioning. The company managed its capital wisely, with debt representing 36% of equity. This means that it has mainly financed its operations from equity and that its low indebtedness reduces the risk associated with investing in the loss-making company.

Next steps:

There are too many aspects of Doma Holdings to cover in a brief article, but the fundamentals of the business can all be found in one place – the Doma Holdings company page on Simply Wall St. We have also made a list of aspects you should look at:

  1. Evaluation: What is Doma Holdings worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Doma Holdings is currently being mispriced by the market.
  2. Management team: An experienced management team at the helm boosts our confidence in the company – take a look at who sits on the Doma Holdings board and the CEO’s background.
  3. 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.

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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