We Might See A Profit From HF Company SA (EPA:HF) Soon

HF Company SA (EPA:HF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. HF Company SA engages in the design and distribution of products and services for the home digital life market in Asia, Europe, and the United States. The company’s loss has recently broadened since it announced a €1.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of €9.3m, moving it further away from breakeven. Many investors are wondering about the rate at which HF Company will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for HF Company

Expectations from some of the French Communications analysts is that HF Company is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of €189k in 2021. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of HF Company's upcoming projects, but, keep 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’d like to point out is that The company has managed its capital prudently, with debt making up 13% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of HF Company to cover in one brief article, but the key fundamentals for the company can all be found in one place – HF Company's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Valuation: What is HF Company 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 HF Company 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 HF Company’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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