Yahoo Finance Plenti Group Limited (ASX:PLT): Are Analysts Optimistic?
Plenti Group Limited (ASX:PLT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Plenti Group Limited engages in the consumer fintech and investment business in Australia. With the latest financial year loss of AU$15m and a trailing-twelve-month loss of AU$16m, the AU$203m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Plenti Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Plenti Group
According to the 3 industry analysts covering Plenti Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$5.8m in 2023. Therefore, the company is expected to breakeven just over a year from now. 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 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 Plenti Group's upcoming projects, but, keep 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 Plenti Group is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Plenti Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Plenti Group's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Historical Track Record: What has Plenti 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Plenti Group'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.
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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.
