Miliboo Société anonyme (EPA:ALMLB) On The Verge Of Breaking Even

With the business potentially at an important milestone, we thought we'd take a closer look at Miliboo Société anonyme's (EPA:ALMLB) future prospects. Miliboo Société anonyme designs and provides furniture. With the latest financial year loss of €1.8m and a trailing-twelve-month loss of €326k, the €21m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Miliboo Société anonyme's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Miliboo Société anonyme

Miliboo Société anonyme is bordering on breakeven, according to some French Consumer Durables analysts. They expect the company to post a final loss in 2020, before turning a profit of €700k in 2021. So, the company is predicted to breakeven approximately 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 75% 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.

Underlying developments driving Miliboo Société anonyme's growth isn’t the focus of this broad overview, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Miliboo Société anonyme is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Miliboo Société anonyme, so if you are interested in understanding the company at a deeper level, take a look at Miliboo Société anonyme's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is Miliboo Société anonyme 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 Miliboo Société anonyme 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 Miliboo Société anonyme’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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