PensionBee Group plc (LON:PBEE) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse PensionBee Group plc's (LON:PBEE) business as it appears the company may be on the cusp of a considerable accomplishment. PensionBee Group plc, a direct-to-consumer financial technology company, provides online pension services in the United Kingdom and the United States. On 31 December 2023, the UK£362m market-cap company posted a loss of UK£11m for its most recent financial year. Many investors are wondering about the rate at which PensionBee Group 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 PensionBee Group

PensionBee Group is bordering on breakeven, according to the 5 British Capital Markets analysts. They expect the company to post a final loss in 2025, before turning a profit of UK£4.7m in 2026. Therefore, the company is expected to breakeven roughly 2 years 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 111% 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.

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Given this is a high-level overview, we won’t go into details of PensionBee Group's upcoming projects, though, take into account that generally 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 PensionBee Group has no debt on its balance sheet, which is quite unusual for a cash-burning 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:

This article is not intended to be a comprehensive analysis on PensionBee Group, so if you are interested in understanding the company at a deeper level, take a look at PensionBee Group's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Historical Track Record: What has PensionBee Group'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 PensionBee Group'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.

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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.

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