Yahoo Finance Analysts Expect Land Securities Group plc (LON:LAND) To Breakeven Soon
Land Securities Group plc (LON:LAND) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. At Landsec, we strive to connect communities, realise potential and deliver sustainable places. The UK£5.1b market-cap company announced a latest loss of UK£1.4b on 31 March 2021 for its most recent financial year result. The most pressing concern for investors is Land Securities Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Land Securities Group
Consensus from 7 of the British REITs analysts is that Land Securities Group is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of UK£183m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Land Securities Group's growth isn’t the focus of this broad overview, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Land Securities Group is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Land Securities Group's case is 48%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Land Securities Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Land Securities Group, take a look at Land Securities Group's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:
Valuation: What is Land Securities Group 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 Land Securities Group 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 Land Securities Group’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.
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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