Yahoo Finance When Will Plant Health Care plc (LON:PHC) Turn A Profit?
We feel now is a pretty good time to analyse Plant Health Care plc's (LON:PHC) business as it appears the company may be on the cusp of a considerable accomplishment. Plant Health Care plc, together with its subsidiaries, provides agricultural biological products and technology solutions in the Americas, Mexico, and internationally. The UK£16m market-cap company’s loss lessened since it announced a US$9.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$5.7m, as it approaches breakeven. As path to profitability is the topic on Plant Health Care's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Plant Health Care
According to some industry analysts covering Plant Health Care, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$2.8m in 2025. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 94%, which is extremely buoyant. 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 Plant Health Care given that this is a high-level summary, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 3.2% 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:
This article is not intended to be a comprehensive analysis on Plant Health Care, so if you are interested in understanding the company at a deeper level, take a look at Plant Health Care's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
Valuation: What is Plant Health Care 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 Plant Health Care is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Plant Health Care’s board and the CEO’s background.
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.
