Vogo SA's (EPA:ALVGO) Profit Outlook

Vogo SA (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 €1.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of €2.3m, 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.

Check out our latest analysis for Vogo

Consensus from 2 of the French Software analysts is that Vogo is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €100k in 2025. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 77% 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.

Underlying developments driving Vogo's growth isn’t the focus of this broad overview, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Vogo currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Vogo's case is 63%. Note that a higher debt obligation increases the risk around 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 key factors you should further research:

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. 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.