When Will Greenyard NV (EBR:GREEN) Breakeven?

Greenyard NV (EBR:GREEN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Greenyard NV supplies fresh, frozen, and prepared fruit and vegetables in Germany, the Netherlands, Belgium, the United Kingdom, France, rest of Europe, and internationally. The €431m market-cap company posted a loss in its most recent financial year of €69m and a latest trailing-twelve-month loss of €22m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Greenyard 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.

View our latest analysis for Greenyard

Consensus from 3 of the Belgian Food analysts is that Greenyard is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of €20m in 2022. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Greenyard's growth isn’t the focus of this broad overview, however, 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 issue worth mentioning. Greenyard currently has a debt-to-equity ratio of 131%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Greenyard 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 Greenyard, take a look at Greenyard's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Valuation: What is Greenyard 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 Greenyard 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 Greenyard’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. 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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