Yahoo Finance Plant Health Care plc (LON:PHC): Are Analysts Optimistic?
Plant Health Care plc (LON:PHC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Plant Health Care plc, together with its subsidiaries, provides agricultural biological products and technology solutions in the Americas, Mexico, and internationally. The UK£48m market-cap company announced a latest loss of US$3.2m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Plant Health Care'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.
View our latest analysis for Plant Health Care
According to the 2 industry analysts covering Plant Health Care, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$2.2m in 2023. So, the company is predicted to breakeven approximately 2 years 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 57%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Plant Health Care given that this is a high-level summary, however, keep in mind 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 The company has managed its capital judiciously, with debt making up 2.1% 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 key fundamentals of Plant Health Care 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 Plant Health Care, take a look at Plant Health Care's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
Historical Track Record: What has Plant Health Care'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 Plant Health Care'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.
This article by Simply Wall St is general in nature. 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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