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Belluscura plc's (LON:BELL) Path To Profitability

Belluscura plc (LON:BELL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Belluscura plc develops and commercialize oxygen related medical device products. The company’s loss has recently broadened since it announced a US$5.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.3m, moving it further away from breakeven. As path to profitability is the topic on Belluscura'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.

Check out our latest analysis for Belluscura

Belluscura is bordering on breakeven, according to some British Medical Equipment analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$3.0m in 2024. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 84% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Belluscura's upcoming projects, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.7% 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 Belluscura, so if you are interested in understanding the company at a deeper level, take a look at Belluscura's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:

  1. Historical Track Record: What has Belluscura's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Belluscura'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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