DX (Group) plc's (LON:DX.): DX (Group) plc, through its subsidiaries, provides parcel, freight, mail, and logistic services in the United Kingdom and the Republic of Ireland. The UK£79m market-cap posted a loss in its most recent financial year of -UK£19.5m and a latest trailing-twelve-month loss of -UK£10.8m shrinking the gap between loss and breakeven. As path to profitability is the topic on DX.’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for DX..
See our latest analysis for DX (Group)
DX. is bordering on breakeven, according to Logistics analysts. They expect the company to post a final loss in 2019, before turning a profit of UK£2.4m in 2020. So, DX. is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which DX. must grow year-on-year. It turns out an average annual growth rate of 113% is expected, which is rather optimistic! 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 DX.’s upcoming projects, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that DX. has managed its capital prudently, with debt making up 38% of equity. This means that DX. 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 key fundamentals of DX. which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at DX., take a look at DX.’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further examine:
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Valuation: What is DX. 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 DX. 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 DX (Group)’s board and the CEO’s back ground.
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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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