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With the business potentially at an important milestone, we thought we'd take a closer look at Deliveroo plc's (LON:ROO) future prospects. Deliveroo plc, a holding company, operates an online food delivery platform in the United Kingdom, Ireland, France, Italy, Belgium, Hong Kong, Singapore, the United Arab Emirates, Kuwait, and Qatar. The UK£2.0b market-cap company announced a latest loss of UK£100k on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Deliveroo's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 16 industry analysts covering Deliveroo, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of UK£53m in 2025. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 67% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Deliveroo's growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
View our latest analysis for Deliveroo
Before we wrap up, there’s one aspect worth mentioning. Deliveroo currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Deliveroo which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Deliveroo, take a look at Deliveroo's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
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Valuation: What is Deliveroo 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 Deliveroo is currently mispriced by the market.
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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 Deliveroo’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.
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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.