HF Company Société Anonyme's (EPA:HF): HF Company Société Anonyme designs and distributes products and services for the home digital life market under the METRONIC and OMENEX names in Asia, Europe, and the United States. The €15m market-cap company announced a latest loss of -€4.1m on 31 December 2018 for its most recent financial year result. As path to profitability is the topic on HF’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for HF’s growth and when analysts expect the company to become profitable.
See our latest analysis for HF Company Société Anonyme
HF is bordering on breakeven, according to the 2 Communications analysts. They expect the company to post a final loss in 2019, before turning a profit of €1.0m in 2020. So, HF is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which HF must grow year-on-year. It turns out an average annual growth rate of 97% is expected, which is extremely buoyant. 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 HF’s upcoming projects, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. HF has managed its capital judiciously, with debt making up 4.0% of equity. This means that HF 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 HF to cover in one brief article, but the key fundamentals for the company can all be found in one place – HF’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should look at:
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Valuation: What is HF 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 HF 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 HF Company Société Anonyme’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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