Analysts Expect Breakeven For Vantiva S.A. (EPA:VANTI) Before Long

We feel now is a pretty good time to analyse Vantiva S.A.'s (EPA:VANTI) business as it appears the company may be on the cusp of a considerable accomplishment. Vantiva S.A. develops, creates, and delivers products and services for the media and entertainment sectors in France, the United Kingdom, rest of Europe, the United States, rest of Americas, and the Asia-Pacific. With the latest financial year loss of €283m and a trailing-twelve-month loss of €222m, the €63m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Vantiva's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Vantiva

Expectations from some of the French Communications analysts is that Vantiva is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €26m in 2026. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Vantiva's growth isn’t the focus of this broad overview, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Vantiva currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Vantiva, so if you are interested in understanding the company at a deeper level, take a look at Vantiva's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has Vantiva's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Vantiva'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.

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

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.