When Will PAULIC Meunerie SA (EPA:ALPAU) Become Profitable?

Simply Wall St
March 08, 2022
Source: Shutterstock

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.

Check out our latest analysis for PAULIC Meunerie

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.

ENXTPA:ALPAU Earnings Per Share Growth March 8th 2022

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.

Next Steps:

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:

  1. 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.
  2. 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.
  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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.