Vogo S.A. (EPA:ALVGO) Is About To Turn The Corner

Vogo S.A. (EPA:ALVGO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. VOGO SA develops, markets, and distributes live and replay, and audio and video solutions for spectators and professionals in sports arenas. The company’s loss has recently broadened since it announced a €2.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of €3.6m, moving it further away from breakeven. The most pressing concern for investors is Vogo's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Vogo

According to some industry analysts covering Vogo, breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of €313k 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 105% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Vogo given that this is a high-level summary, however, keep in mind 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 Vogo is its debt-to-equity ratio of 126%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. 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 Vogo, so if you are interested in understanding the company at a deeper level, take a look at Vogo's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Historical Track Record: What has Vogo'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 Vogo'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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