Yahoo Finance When Will Pantaflix AG (ETR:PAL) Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Pantaflix AG's (ETR:PAL) future prospects. Pantaflix AG operates as an entertainment company. The company’s loss has recently broadened since it announced a €2.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of €2.6m, moving it further away from breakeven. Many investors are wondering about the rate at which Pantaflix will turn a profit, with the big question being “when will the company breakeven?” 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 Pantaflix
According to the 2 industry analysts covering Pantaflix, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of €950k in 2024. Therefore, the company is expected 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 98% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Pantaflix's upcoming projects, 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 Pantaflix 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 in investing in the loss-making company.
Next Steps:
There are too many aspects of Pantaflix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Pantaflix's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Valuation: What is Pantaflix 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 Pantaflix 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 Pantaflix’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.
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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