- United Kingdom
- Building
- AIM:SFE
Safestyle UK plc (LON:SFE) On The Verge Of Breaking Even
- Published
- May 30, 2021
Safestyle UK plc (LON:SFE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Safestyle UK plc designs, manufactures, sells, installs, and maintains windows and doors for the homeowner market in the United Kingdom. The UK£86m market-cap company announced a latest loss of UK£5.1m on 03 January 2021 for its most recent financial year result. The most pressing concern for investors is Safestyle UK's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Safestyle UK
Safestyle UK is bordering on breakeven, according to the 2 British Building analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of UK£4.1m in 2021. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 70%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Safestyle UK's growth isn’t the focus of this broad overview, but, keep in mind that generally 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 14% 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 key fundamentals of Safestyle UK which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Safestyle UK, take a look at Safestyle UK's company page on Simply Wall St. We've also put together a list of essential factors you should further research:
- Valuation: What is Safestyle UK 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 Safestyle UK is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Safestyle UK’s board and the CEO’s background.
- 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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