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Belluscura plc (LON:BELL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Belluscura plc develops and commercialize oxygen related medical device products. With the latest financial year loss of US$5.2m and a trailing-twelve-month loss of US$7.3m, the UK£77m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Belluscura will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Belluscura
Expectations from some of the British Medical Equipment analysts is that Belluscura is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$13m in 2024. So, the company is predicted to breakeven approximately 2 years from today. 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 93% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Belluscura given that this is a high-level summary, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.7% 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 Belluscura to cover in one brief article, but the key fundamentals for the company can all be found in one place – Belluscura's company page on Simply Wall St. We've also put together a list of key factors you should further examine:
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Historical Track Record: What has Belluscura'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.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Belluscura's board and the CEO’s background.
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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.