U.S. markets open in 2 hours 31 minutes
  • S&P Futures

    4,154.50
    -14.50 (-0.35%)
     
  • Dow Futures

    34,193.00
    -125.00 (-0.36%)
     
  • Nasdaq Futures

    13,331.50
    -55.50 (-0.41%)
     
  • Russell 2000 Futures

    2,205.40
    -17.30 (-0.78%)
     
  • Crude Oil

    65.29
    -0.08 (-0.12%)
     
  • Gold

    1,849.90
    +11.80 (+0.64%)
     
  • Silver

    27.73
    +0.36 (+1.33%)
     
  • EUR/USD

    1.2171
    +0.0025 (+0.21%)
     
  • 10-Yr Bond

    1.6350
    0.0000 (0.00%)
     
  • Vix

    20.63
    -2.50 (-10.81%)
     
  • GBP/USD

    1.4101
    -0.0001 (-0.01%)
     
  • USD/JPY

    109.1200
    -0.2270 (-0.21%)
     
  • BTC-USD

    44,491.09
    -5,091.84 (-10.27%)
     
  • CMC Crypto 200

    1,237.45
    -121.11 (-8.91%)
     
  • FTSE 100

    6,999.45
    -44.16 (-0.63%)
     
  • Nikkei 225

    27,824.83
    -259.67 (-0.92%)
     

When Will Glatfelter Corporation (NYSE:GLT) Breakeven?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

With the business potentially at an important milestone, we thought we'd take a closer look at Glatfelter Corporation's (NYSE:GLT) future prospects. Glatfelter Corporation, together with its subsidiaries, manufactures and sells engineered materials worldwide. The US$747m market-cap company posted a loss in its most recent financial year of US$25m and a latest trailing-twelve-month loss of US$33m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Glatfelter's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Glatfelter

Expectations from some of the American Forestry analysts is that Glatfelter is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of US$34m in 2021. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Glatfelter given that this is a high-level summary, however, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Glatfelter is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Glatfelter's case is 59%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Glatfelter, so if you are interested in understanding the company at a deeper level, take a look at Glatfelter's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

  1. Valuation: What is Glatfelter 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 Glatfelter is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Glatfelter’s board and the CEO’s background.

  3. 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.