We feel now is a pretty good time to analyse Bigblu Broadband plc's (LON:BBB) business as it appears the company may be on the cusp of a considerable accomplishment. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in the United Kingdom, Europe, Australia, and internationally. The UK£66m market-cap company announced a latest loss of UK£4.9m on 30 November 2020 for its most recent financial year result. As path to profitability is the topic on Bigblu Broadband's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Bigblu Broadband

Expectations from some of the British Telecom analysts is that Bigblu Broadband is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of UK£27m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 31% 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.

Underlying developments driving Bigblu Broadband's growth isn’t the focus of this broad overview, but, 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 we would like to bring into light with Bigblu Broadband is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Bigblu Broadband's case is 42%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Bigblu Broadband, so if you are interested in understanding the company at a deeper level, take a look at Bigblu Broadband's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Valuation: What is Bigblu Broadband 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 Bigblu Broadband 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 Bigblu Broadband’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.

This article by Simply Wall St is general in nature. 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.

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