We Might See A Profit From SES-imagotag Société Anonyme (EPA:SESL) Soon

We feel now is a pretty good time to analyse SES-imagotag Société Anonyme's (EPA:SESL) business as it appears the company may be on the cusp of a considerable accomplishment. SES-imagotag Société Anonyme engages in the installation and maintenance of electronic shelf labels for the retail industry worldwide. With the latest financial year loss of €12m and a trailing-twelve-month loss of €17m, the €632m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is SES-imagotag Société Anonyme's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for SES-imagotag Société Anonyme

Consensus from 4 of the French Electronic analysts is that SES-imagotag Société Anonyme is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of €1.7m in 2021. Therefore, the company is expected to breakeven roughly a year 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 118% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for SES-imagotag Société Anonyme given that this is a high-level summary, though, bear 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’d like to point out is that The company has managed its capital prudently, with debt making up 33% 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 SES-imagotag Société Anonyme to cover in one brief article, but the key fundamentals for the company can all be found in one place – SES-imagotag Société Anonyme's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is SES-imagotag Société Anonyme 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 SES-imagotag Société Anonyme 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 SES-imagotag Société Anonyme’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.

When trading SES-imagotag Société Anonyme or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.