We feel now is a pretty good time to analyse Frontier Communications Parent, Inc.'s (NASDAQ:FYBR) business as it appears the company may be on the cusp of a considerable accomplishment. Frontier Communications Parent, Inc., together with its subsidiaries, provides various services to residential and business customers over its fiber-optic and copper networks in 25 states in the United States. The US$7.3b market-cap company posted a loss in its most recent financial year of US$402m and a latest trailing-twelve-month loss of US$156m shrinking the gap between loss and breakeven. As path to profitability is the topic on Frontier Communications Parent's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Frontier Communications Parent

According to the 3 industry analysts covering Frontier Communications Parent, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$292m in 2021. The company is therefore projected to breakeven around 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 22%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Frontier Communications Parent's growth isn’t the focus of this broad overview, though, bear 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 issue worth mentioning. Frontier Communications Parent currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is Frontier Communications Parent 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 Frontier Communications Parent 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 Frontier Communications Parent’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.

This article by Simply Wall St is general in nature. 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.

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