Yahoo Finance Basic-Fit N.V. (AMS:BFIT) Could Be Less Than A Year Away From Profitability
Basic-Fit N.V. (AMS:BFIT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Basic-Fit N.V., together with its subsidiaries, engages in the operation of fitness clubs. On 31 December 2023, the €1.4b market-cap company posted a loss of €2.7m for its most recent financial year. The most pressing concern for investors is Basic-Fit's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Basic-Fit
According to the 8 industry analysts covering Basic-Fit, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €47m in 2024. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 66% 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.
Underlying developments driving Basic-Fit's growth isn’t the focus of this broad overview, however, keep in mind that generally 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 Basic-Fit is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Basic-Fit, so if you are interested in understanding the company at a deeper level, take a look at Basic-Fit's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:
Valuation: What is Basic-Fit 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 Basic-Fit 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 Basic-Fit’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.
