Yahoo Finance Public Policy Holding Company, Inc. (LON:PPHC) On The Verge Of Breaking Even
We feel now is a pretty good time to analyse Public Policy Holding Company, Inc.'s (LON:PPHC) business as it appears the company may be on the cusp of a considerable accomplishment. Public Policy Holding Company, Inc. operates as an advisory company. The UK£157m market-cap company’s loss lessened since it announced a US$1.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$770k, as it approaches breakeven. Many investors are wondering about the rate at which Public Policy Holding Company 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 Public Policy Holding Company
According to some industry analysts covering Public Policy Holding Company, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$18m in 2022. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 46%, which signals high confidence from analysts. 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 Public Policy Holding Company's upcoming projects, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 2.8% 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 Public Policy Holding Company to cover in one brief article, but the key fundamentals for the company can all be found in one place – Public Policy Holding Company's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Public Policy Holding Company 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 Public Policy Holding Company is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Public Policy Holding Company’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.
