YOC AG’s (ETR:YOC): YOC AG provides mobile advertising solutions in Europe. With the latest financial year loss of -€530k and a trailing-twelve month of -€730k, the €12m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on YOC’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for YOC, its year of breakeven and its implied growth rate.
Expectation from Interactive Media and Services analysts is YOC is on the verge of breakeven. They expect the company to post a final loss in 2018, before turning a profit of €37k in 2019. So, YOC is predicted to breakeven approximately a couple of months from now! How fast will YOC have to grow each year in order to reach the breakeven point by 2019? Working backwards from analyst estimates, it turns out that they expect the company to grow 111% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving YOC’s growth isn’t the focus of this broad overview, though, 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 I would like to bring into light with YOC is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
This article is not intended to be a comprehensive analysis on YOC, so if you are interested in understanding the company at a deeper level, take a look at YOC’s company page on Simply Wall St. I’ve also put together a list of important factors you should look at:
- Historical Track Record: What has YOC’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 YOC’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 past 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. For errors that warrant correction please contact the editor at email@example.com.