Dolphin Entertainment, Inc. (NASDAQ:DLPN): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Dolphin Entertainment, Inc.’s (NASDAQ:DLPN) business as it appears the company may be on the cusp of a considerable accomplishment. Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. On 31 December 2023, the US$22m market-cap company posted a loss of US$24m for its most recent financial year. Many investors are wondering about the rate at which Dolphin Entertainment will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Dolphin Entertainment

Dolphin Entertainment is bordering on breakeven, according to some American Entertainment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$5.8m in 2025. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 133% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We’re not going to go through company-specific developments for Dolphin Entertainment given that this is a high-level summary, however, keep in mind that generally 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 issue worth mentioning. Dolphin Entertainment currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Dolphin Entertainment’s case is 97%. 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 Dolphin Entertainment to cover in one brief article, but the key fundamentals for the company can all be found in one place – Dolphin Entertainment’s company page on Simply Wall St. We’ve also compiled a list of essential aspects you should look at:

1. Historical Track Record: What has Dolphin Entertainment’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 Dolphin Entertainment’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.