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Zur Rose Group AG's (VTX:ROSE): Zur Rose Group AG, an online pharmacy company, wholesales products to medical practitioners under the Zur Rose and DocMorris brands in Germany and Austria. The CHF854m market-cap company announced a latest loss of -CHF39.0m on 31 December 2018 for its most recent financial year result. As path to profitability is the topic on ROSE’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for ROSE.
View our latest analysis for Zur Rose Group
ROSE is bordering on breakeven, according to the 4 Consumer Retailing analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of CHF25m in 2021. So, ROSE is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, I calculated the rate at which ROSE must grow year-on-year. It turns out an average annual growth rate of 82% is expected, which signals high confidence from analysts. 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 ROSE’s upcoming projects, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that ROSE has managed its capital judiciously, with debt making up 26% of equity. This means that ROSE 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 ROSE to cover in one brief article, but the key fundamentals for the company can all be found in one place – ROSE’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should look at:
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Valuation: What is ROSE 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 ROSE 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 Zur Rose 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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.