Yahoo Finance When Will Plant Health Care plc (LON:PHC) Become Profitable?
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 company’s loss has recently broadened since it announced a US$6.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$10m, moving it further away from breakeven. Many investors are wondering about the rate at which Plant Health Care 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.
View our latest analysis for Plant Health Care
According to some industry analysts covering Plant Health Care, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$4.5m in 2024. 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 signals high confidence from analysts. 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 Plant Health Care given that this is a high-level summary, 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 The company has managed its capital judiciously, with debt making up 1.9% 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 Plant Health Care to cover in one brief article, but the key fundamentals for the company can all be found in one place – Plant Health Care's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:
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.
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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