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Plant Health Care plc (LON:PHC): Is Breakeven Near?

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£27m market-cap company’s loss lessened since it announced a US$9.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$5.7m, as it approaches 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

Expectations from some of the British Chemicals analysts is that Plant Health Care is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$1.5m in 2024. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 122% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Plant Health Care's upcoming projects, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 3.2% 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 put together a list of key factors you should further research:

  1. Valuation: What is Plant Health Care 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 Plant Health Care is currently mispriced by the market.

  2. 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.

  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.

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.