Analysts Expect Breakeven For Redcare Pharmacy NV (ETR:RDC) Before Long
Redcare Pharmacy NV (ETR:RDC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Redcare Pharmacy NV owns and operates online pharmacies in the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France. The €2.3b market-cap company’s loss lessened since it announced a €78m loss in the full financial year, compared to the latest trailing-twelve-month loss of €16m, as it approaches breakeven. As path to profitability is the topic on Redcare Pharmacy's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Redcare Pharmacy
Redcare Pharmacy is bordering on breakeven, according to the 11 German Consumer Retailing analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €44m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 63%, 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, we won’t go into details of Redcare Pharmacy's upcoming projects, however, bear in mind that generally 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 prudently, with debt making up 39% 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:
There are too many aspects of Redcare Pharmacy to cover in one brief article, but the key fundamentals for the company can all be found in one place – Redcare Pharmacy's company page on Simply Wall St. We've also put together a list of essential factors you should look at:
Valuation: What is Redcare Pharmacy 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 Redcare Pharmacy is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Redcare Pharmacy’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.
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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.
