In This Article:
We feel now is a pretty good time to analyse TEAM plc's (LON:TEAM) business as it appears the company may be on the cusp of a considerable accomplishment. TEAM plc provides investment management, financial advisory, and insurance brokering services in Jersey, the Middle East, Asia, and Africa. The company’s loss has recently broadened since it announced a UK£445k loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£956k, moving it further away from breakeven. The most pressing concern for investors is TEAM's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for TEAM
Expectations from some of the British Capital Markets analysts is that TEAM is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of UK£200k in 2026. Therefore, the company is expected to breakeven just over a year 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 74% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for TEAM given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 12% 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:
This article is not intended to be a comprehensive analysis on TEAM, so if you are interested in understanding the company at a deeper level, take a look at TEAM's company page on Simply Wall St. We've also put together a list of key factors you should further research:
-
Historical Track Record: What has TEAM'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 TEAM's board and the CEO’s background.
-
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.