When Will WALLIX GROUP SA (EPA:ALLIX) Turn A Profit?

WALLIX GROUP SA (EPA:ALLIX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. WALLIX GROUP SA publishes and provides cybersecurity software solutions worldwide. The €61m market-cap company announced a latest loss of €8.5m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which WALLIX GROUP will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for WALLIX GROUP

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 €5.0m in 2025. Therefore, the company is expected to breakeven just over a year from now. 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 102%, which is extremely buoyant. 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 WALLIX GROUP given that this is a high-level summary, though, take into account that generally 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 WALLIX GROUP is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in WALLIX GROUP's case is 58%. 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 further research:

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.

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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.

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