Totally plc’s (LON:TLY): Totally PLC, through its subsidiaries, provides solutions to the healthcare sector in the United Kingdom. The UK£14.47m market-cap company announced a latest loss of -UK£2.06m on 31 December 2017 for its most recent financial year result. As path to profitability is the topic on TLY’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for TLY, its year of breakeven and its implied growth rate.
TLY is bordering on breakeven, according to Healthcare analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of UK£0 in . So, TLY is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which TLY must grow year-on-year. It turns out an average annual growth rate of 68.26% 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 TLY’s upcoming projects, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. TLY has managed its capital judiciously, with debt making up 0.35% of equity. This means that TLY has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of TLY which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at TLY, take a look at TLY’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should look at:
- Valuation: What is TLY 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 TLY 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 Totally’s board and the CEO’s back ground.
- 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.