Loss-Making Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) Set To Breakeven
Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund through its subsidiaries, operates a football club in Germany. The €436m market-cap company posted a loss in its most recent financial year of €35m and a latest trailing-twelve-month loss of €29m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien
Consensus from 3 of the German Entertainment analysts is that Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of €6.3m in 2023. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 87% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien given that this is a high-level summary, but, bear in mind that by and large 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. Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are key fundamentals of Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien, take a look at Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien 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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien 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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien’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.
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