Stock Analysis

Promotora de Informaciones, S.A. (BME:PRS): Are Analysts Optimistic?

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BME:PRS
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Promotora de Informaciones, S.A. (BME:PRS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Promotora de Informaciones, S.A., together with its subsidiaries, engages in the exploitation of media in Spain and internationally. The €278m market-cap company announced a latest loss of €13m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Promotora de Informaciones' 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 Promotora de Informaciones

Consensus from 4 of the Spanish Media analysts is that Promotora de Informaciones is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of €12m in 2024. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 94% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
BME:PRS Earnings Per Share Growth March 31st 2023

Underlying developments driving Promotora de Informaciones' growth isn’t the focus of this broad overview, but, bear in mind that typically 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. Promotora de Informaciones currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Promotora de Informaciones which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Promotora de Informaciones, take a look at Promotora de Informaciones' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

  1. Valuation: What is Promotora de Informaciones 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 Promotora de Informaciones 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 Promotora de Informaciones’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.

Valuation is complex, but we're helping make it simple.

Find out whether Promotora de Informaciones is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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