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windeln.de SE (FRA:WDLK): Are Analysts Optimistic?

Simply Wall St

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windeln.de SE's (FRA:WDLK): windeln.de SE, together with its subsidiaries, operates as an online retailer of baby, toddler, and children products in Germany, other European countries, and China. The €9.4m market-cap posted a loss in its most recent financial year of -€27.1m and a latest trailing-twelve-month loss of -€24.3m shrinking the gap between loss and breakeven. The most pressing concern for investors is WDLK’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for WDLK.

See our latest analysis for windeln.de

According to the industry analysts covering WDLK, breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of €100k in 2020. So, WDLK is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which WDLK must grow year-on-year. It turns out an average annual growth rate of 104% is expected, which is rather optimistic! If this rate turns out to be too aggressive, WDLK may become profitable much later than analysts predict.

DB:WDLK Past and Future Earnings, July 19th 2019

Given this is a high-level overview, I won’t go into details of WDLK’s upcoming projects, however, keep in mind that typically 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. WDLK has managed its capital judiciously, with debt making up 3.8% of equity. This means that WDLK 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:

This article is not intended to be a comprehensive analysis on WDLK, so if you are interested in understanding the company at a deeper level, take a look at WDLK’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further examine:

  1. Valuation: What is WDLK 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 WDLK 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 windeln.de’s board and the CEO’s back ground.
  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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.