Analysts Expect eDreams ODIGEO S.A. (BME:EDR) To Breakeven Soon

We feel now is a pretty good time to analyse eDreams ODIGEO S.A.'s (BME:EDR) business as it appears the company may be on the cusp of a considerable accomplishment. eDreams ODIGEO S.A., together with its subsidiaries, operates as an online travel company in Europe. The €947m market-cap company’s loss lessened since it announced a €43m loss in the full financial year, compared to the latest trailing-twelve-month loss of €21m, as it approaches breakeven. The most pressing concern for investors is eDreams ODIGEO's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for eDreams ODIGEO

eDreams ODIGEO is bordering on breakeven, according to the 5 Spanish Hospitality analysts. They expect the company to post a final loss in 2023, before turning a profit of €8.7m in 2024. So, the company is predicted to breakeven approximately a year 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 99% 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 eDreams ODIGEO given that this is a high-level summary, however, take into account that generally 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. eDreams ODIGEO currently has a debt-to-equity ratio of 157%. 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 too many aspects of eDreams ODIGEO to cover in one brief article, but the key fundamentals for the company can all be found in one place – eDreams ODIGEO's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is eDreams ODIGEO 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 eDreams ODIGEO 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 eDreams ODIGEO’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.