We Might See A Profit From Vogo SA (EPA:ALVGO) Soon

We feel now is a pretty good time to analyse Vogo SA's (EPA:ALVGO) business as it appears the company may be on the cusp of a considerable accomplishment. VOGO SA develops, markets, and distributes live and replay, and audio and video solutions for spectators and professionals in sports arenas. The €21m market-cap company’s loss lessened since it announced a €2.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of €1.2m, as it approaches breakeven. As path to profitability is the topic on Vogo's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Vogo

Vogo is bordering on breakeven, according to some French Software analysts. They expect the company to post a final loss in 2024, before turning a profit of €100k in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 105% year-on-year, on average, which is rather optimistic! 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, bear in mind that typically 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 relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Vogo's case is 47%. 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 key aspects 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. 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.