Odiot S.A. (EPA:MLODT) Has Found A Path To Profitability

Odiot S.A. (EPA:MLODT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Odiot S.A. creates and sells pieces and cutlery in solid silver, vermeil, gold, and precious metals. The €8.8m market-cap company announced a latest loss of €3.6m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Odiot's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Expectations from some of the French Consumer Durables analysts is that Odiot is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €190k in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 80%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Odiot's upcoming projects, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Odiot

Before we wrap up, there’s one issue worth mentioning. Odiot 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 too many aspects of Odiot to cover in one brief article, but the key fundamentals for the company can all be found in one place – Odiot's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Valuation: What is Odiot 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 Odiot 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 Odiot’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.