Aramis Group SAS (EPA:ARAMI): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Aramis Group SAS' (EPA:ARAMI) future prospects. Aramis Group SAS engages in the online sale of used vehicles in France, Belgium, the United Kingdom, Belgium, Austria, Italy, and Spain. On 30 September 2023, the €293m market-cap company posted a loss of €32m for its most recent financial year. Many investors are wondering about the rate at which Aramis Group SAS 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.

View our latest analysis for Aramis Group SAS

According to the 5 industry analysts covering Aramis Group SAS, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €9.1m in 2025. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 94%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Aramis Group SAS' growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Aramis Group SAS currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Aramis Group SAS' case is 80%. 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 Aramis Group SAS, so if you are interested in understanding the company at a deeper level, take a look at Aramis Group SAS' company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Aramis Group SAS 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 Aramis Group SAS 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 Aramis Group SAS’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. 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.