PAULIC Meunerie SA (EPA:ALPAU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. PAULIC Meunerie SA produces and sells wheat and buckwheat flour for professionals in the bakery, crêperie, and food industry in France and internationally. The €15m market-cap company posted a loss in its most recent financial year of €509k and a latest trailing-twelve-month loss of €966k leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which PAULIC Meunerie will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Expectations from some of the French Food analysts is that PAULIC Meunerie is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of €2.0m in 2023. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which signals high confidence from analysts. 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 PAULIC Meunerie's upcoming projects, but, bear in mind 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. PAULIC Meunerie currently has a debt-to-equity ratio of 102%. Typically, 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.
There are key fundamentals of PAULIC Meunerie 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 PAULIC Meunerie, take a look at PAULIC Meunerie's company page on Simply Wall St. We've also put together a list of key factors you should further research:
- Valuation: What is PAULIC Meunerie 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 PAULIC Meunerie is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on PAULIC Meunerie’s board and the CEO’s background.
- 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.