Yahoo Finance Loss-Making Belluscura plc (LON:BELL) Expected To Breakeven In The Medium-Term
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$8.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$10m, 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. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Belluscura
Belluscura is bordering on breakeven, according to the 2 British Medical Equipment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$6.6m in 2025. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 93% year-on-year, on average, 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 Belluscura given that this is a high-level summary, 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.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.4% 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:
There are too many aspects of Belluscura to cover in one brief article, but the key fundamentals for the company can all be found in one place – Belluscura's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:
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.
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.
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.
