Breakeven Is Near for Pantaflix AG (ETR:PAL)

With the business potentially at an important milestone, we thought we'd take a closer look at Pantaflix AG's (ETR:PAL) future prospects. Pantaflix AG, a media company, engages in the production and development of movie theatre feature films, series, and short serial video contents. The €27m market-cap company posted a loss in its most recent financial year of €7.7m and a latest trailing-twelve-month loss of €5.8m shrinking the gap between loss and breakeven. The most pressing concern for investors is Pantaflix's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Pantaflix

Pantaflix is bordering on breakeven, according to some German Entertainment analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of €1.3m in 2021. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 52% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Pantaflix'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 we wrap up, there’s one issue worth mentioning. Pantaflix currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Pantaflix's case is 59%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Pantaflix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Pantaflix's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is Pantaflix 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 Pantaflix 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 Pantaflix’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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