WALLIX GROUP SA (EPA:ALLIX) On The Verge Of Breaking Even

With the business potentially at an important milestone, we thought we'd take a closer look at WALLIX GROUP SA's (EPA:ALLIX) future prospects. WALLIX GROUP SA publishes and provides cybersecurity software solutions worldwide. The €139m market-cap company announced a latest loss of €4.3m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is WALLIX GROUP'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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Consensus from 2 of the French Software analysts is that WALLIX GROUP is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €400k in 2025. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 95%, 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.

Given this is a high-level overview, we won’t go into details of WALLIX GROUP's upcoming projects, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for WALLIX GROUP

One thing we would like to bring into light with WALLIX GROUP is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in WALLIX GROUP's case is 80%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is WALLIX GROUP 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 WALLIX GROUP 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 WALLIX GROUP’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.