Waberer's International Nyrt. (BST:3WB) On The Verge Of Breaking Even

We feel now is a pretty good time to analyse Waberer's International Nyrt.'s (BST:3WB) business as it appears the company may be on the cusp of a considerable accomplishment. Waberer's International Nyrt. provides full truckload (FTL) transportation services in Europe. The €82m market-cap company announced a latest loss of €15m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Waberer's International Nyrt's investors mind, we've decided to gauge market sentiment. 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 Waberer's International Nyrt

Waberer's International Nyrt is bordering on breakeven, according to some German Transportation analysts. They expect the company to post a final loss in 2020, before turning a profit of €6.0m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 124% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Waberer's International Nyrt given that this is a high-level summary, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Waberer's International Nyrt is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Waberer's International Nyrt's case is 56%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Waberer's International Nyrt, so if you are interested in understanding the company at a deeper level, take a look at Waberer's International Nyrt's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Valuation: What is Waberer's International Nyrt 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 Waberer's International Nyrt 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 Waberer's International Nyrt’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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