DFV Deutsche Familienversicherung AG (ETR:DFV): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at DFV Deutsche Familienversicherung AG's (ETR:DFV) future prospects. DFV Deutsche Familienversicherung AG is a publicly owned investment manager. The €167m market-cap company announced a latest loss of €7.4m on 31 December 2020 for its most recent financial year result. Many investors are wondering about the rate at which DFV Deutsche Familienversicherung will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for DFV Deutsche Familienversicherung

Consensus from 4 of the German Insurance analysts is that DFV Deutsche Familienversicherung is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of €3.6m in 2022. So, the company is predicted to breakeven just over a year from today. 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 99% 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.

We're not going to go through company-specific developments for DFV Deutsche Familienversicherung given that this is a high-level summary, 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 aspect worth mentioning. DFV Deutsche Familienversicherung currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on DFV Deutsche Familienversicherung, so if you are interested in understanding the company at a deeper level, take a look at DFV Deutsche Familienversicherung's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. Historical Track Record: What has DFV Deutsche Familienversicherung'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on DFV Deutsche Familienversicherung'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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