Spineway Société Anonyme's (EPA:ALSPW) Shift From Loss To Profit

By
Simply Wall St
Published
March 21, 2021
ENXTPA:ALSPW
Source: Shutterstock

We feel now is a pretty good time to analyse Spineway Société Anonyme's (EPA:ALSPW) business as it appears the company may be on the cusp of a considerable accomplishment. Spineway Société Anonyme engages in the design, manufacture, and marketing of implant lines and surgical equipment for treating spinal column pathologies. The €45m market-cap company announced a latest loss of €14m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Spineway Société Anonyme's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Spineway Société Anonyme

Spineway Société Anonyme is bordering on breakeven, according to some French Medical Equipment analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of €2.1m in 2023. The company is therefore projected to breakeven around 2 years from today. 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 88% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
ENXTPA:ALSPW Earnings Per Share Growth March 22nd 2021

We're not going to go through company-specific developments for Spineway Société Anonyme given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 27% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Spineway Société Anonyme 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 Spineway Société Anonyme, take a look at Spineway Société Anonyme's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

  1. Historical Track Record: What has Spineway Société Anonyme's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Spineway 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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