Analysts Expect Makheia Group Société anonyme (EPA:ALMAK) To Breakeven Soon

We feel now is a pretty good time to analyse Makheia Group Société anonyme's (EPA:ALMAK) business as it appears the company may be on the cusp of a considerable accomplishment. Makheia Group Société anonyme provides brand solutions in France. With the latest financial year loss of €9.7m and a trailing-twelve-month loss of €9.6m, the €3.5m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Makheia Group Société anonyme's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Makheia Group Société anonyme

According to some industry analysts covering Makheia Group Société anonyme, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of €304k in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 111% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Makheia Group Société anonyme given that this is a high-level summary, however, keep in mind that by and large 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 Makheia Group Société anonyme is its debt-to-equity ratio of 162%. 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 in investing in the loss-making company.

Next Steps:

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

1. Historical Track Record: What has Makheia Group 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 Makheia Group 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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