Yahoo Finance When Will Venture Life Group Plc (LON:VLG) Turn A Profit?
Venture Life Group Plc’s (LON:VLG): Venture Life Group plc develops and commercializes oral care products, food supplements, medical devices, and dermo-cosmetics for the ageing population in the United Kingdom, Europe, and internationally. On 31 December 2017, the UK£15.47m market-cap posted a loss of -UK£367.00k for its most recent financial year. As path to profitability is the topic on VLG’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for VLG.
View out our latest analysis for Venture Life Group
Expectation from Personal Products analysts is VLG is on the verge of breakeven. They anticipate the company to incur a final loss in 2017, before generating positive profits of UK£70.00k in 2018. VLG is therefore projected to breakeven around a couple of months from now! What rate will VLG have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 142.06%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of VLG’s upcoming projects, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with VLG is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in VLG’s case is 80.20%. 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 VLG to cover in one brief article, but the key fundamentals for the company can all be found in one place – VLG’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further research:
Valuation: What is VLG 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 VLG 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 Venture Life Group’s board and the CEO’s back ground.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
