Belysse Group NV (EBR:BELYS) On The Verge Of Breaking Even

With the business potentially at an important milestone, we thought we'd take a closer look at Belysse Group NV's (EBR:BELYS) future prospects. Belysse Group NV engages in the production and sale of textile floor coverings for commercial and residential applications in Europe, North America, and internationally. On 31 December 2023, the €32m market-cap company posted a loss of €11m for its most recent financial year. As path to profitability is the topic on Belysse Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Belysse Group

Consensus from 2 of the Belgian Consumer Durables analysts is that Belysse Group is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of €1.7m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 100%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Belysse Group given that this is a high-level summary, but, 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 Belysse Group is its debt-to-equity ratio of 176%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Belysse Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Belysse Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Belysse Group 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 Belysse Group 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 Belysse Group’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.

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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.