Attica Bank S.A.’s (ATH:TATT): Attica Bank S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and companies in Greece. The €98m market-cap posted a loss in its most recent financial year of -€11.8m and a latest trailing-twelve-month loss of -€56.0m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which TATT will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for TATT.
According to the industry analysts covering TATT, breakeven is near. They anticipate the company to incur a final loss in 2018, before generating positive profits of €1.0m in 2019. Therefore, TATT is expected to breakeven roughly a couple of months from now! In order to meet this breakeven date, I calculated the rate at which TATT must grow year-on-year. It turns out an average annual growth rate of 133% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving TATT’s growth isn’t the focus of this broad overview, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that TATT has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. This means that TATT 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 TATT 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 TATT, take a look at TATT’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should further examine:
- Historical Track Record: What has TATT’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Attica Bank’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.
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