Yahoo Finance Analysts Expect Breakeven For Ten Lifestyle Group Plc (LON:TENG)
Ten Lifestyle Group Plc’s (LON:TENG): Ten Lifestyle Group Plc provides concierge services to high-net-worth members worldwide. The UK£40m market-cap company announced a latest loss of -UK£8.1m on 31 August 2018 for its most recent financial year result. As path to profitability is the topic on TENG’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for TENG, its year of breakeven and its implied growth rate.
Check out our latest analysis for Ten Lifestyle Group
TENG is bordering on breakeven, according to the 2 Online Retail analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of UK£6.6m in 2021. TENG is therefore projected to breakeven around 2 years from now. What rate will TENG have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 70%, which is rather optimistic! If this rate turns out to be too aggressive, TENG may become profitable much later than analysts predict.
Underlying developments driving TENG’s growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that TENG has managed its capital prudently, with debt making up 0.3% of equity. This means that TENG 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:
There are key fundamentals of TENG which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at TENG, take a look at TENG’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further examine:
Valuation: What is TENG 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 TENG 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 Ten Lifestyle Group’s board and the CEO’s back ground.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
