Market Sentiment Around Loss-Making Bike24 Holding AG (ETR:BIKE)

We feel now is a pretty good time to analyse Bike24 Holding AG's (ETR:BIKE) business as it appears the company may be on the cusp of a considerable accomplishment. Bike24 Holding AG operates online cycling platforms in Germany, Austria, Switzerland, rest of Europe, and internationally. With the latest financial year loss of €14m and a trailing-twelve-month loss of €9.5m, the €140m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Bike24 Holding 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.

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Consensus from 2 of the German Specialty Retail analysts is that Bike24 Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €2.4m in 2026. The company is therefore projected 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Bike24 Holding's growth isn’t the focus of this broad overview, however, 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.

See our latest analysis for Bike24 Holding

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 25% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Bike24 Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bike24 Holding's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Valuation: What is Bike24 Holding 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 Bike24 Holding 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 Bike24 Holding’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.