Belluscura plc (LON:BELL): Are Analysts Optimistic?

By
Simply Wall St
Published
May 10, 2022
AIM:BELL
Source: Shutterstock

We feel now is a pretty good time to analyse Belluscura plc's (LON:BELL) business as it appears the company may be on the cusp of a considerable accomplishment. Belluscura plc develops and commercialize oxygen related medical device products. On 31 December 2021, the UK£103m market-cap company posted a loss of US$5.2m for its most recent financial year. Many investors are wondering about the rate at which Belluscura will turn a profit, with the big question being “when will the company 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 Belluscura

According to some industry analysts covering Belluscura, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$12m in 2024. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 82% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
AIM:BELL Earnings Per Share Growth May 10th 2022

Given this is a high-level overview, we won’t go into details of Belluscura's upcoming projects, however, 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.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 1.6% 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 Belluscura to cover in one brief article, but the key fundamentals for the company can all be found in one place – Belluscura's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

  1. Valuation: What is Belluscura 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 Belluscura 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 Belluscura’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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