Vogo S.A.'s (EPA:ALVGO) About To Shift From Loss To Profit

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. On 31 December 2020, the €39m market-cap company posted a loss of €3.3m for its most recent financial year. Many investors are wondering about the rate at which Vogo 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 Vogo

Vogo is bordering on breakeven, according to the 2 French Software analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of €209k in 2021. So, the company is predicted to breakeven approximately a year 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 104%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Vogo's growth isn’t the focus of this broad overview, but, 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.

One thing we would like to bring into light with Vogo is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Vogo's case is 76%. 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 too many aspects of Vogo to cover in one brief article, but the key fundamentals for the company can all be found in one place – Vogo's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Vogo 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 Vogo 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 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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