Yahoo Finance When Will Made.com Group Plc (LON:MADE) Breakeven?
Made.com Group Plc (LON:MADE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Made.com Group Plc, through its subsidiaries, engages in the online retail of furnishings and homeware. On 31 December 2021, the UK£229m market-cap company posted a loss of UK£28m for its most recent financial year. As path to profitability is the topic on Made.com Group'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 Made.com Group
Consensus from 5 of the British Online Retail analysts is that Made.com Group is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of UK£1.1m in 2023. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 109%, 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 Made.com Group given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Made.com Group has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Made.com 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 Made.com Group, take a look at Made.com Group's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Valuation: What is Made.com 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 Made.com 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 Made.com 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.
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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.
