Directa Plus Plc (LON:DCTA): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Directa Plus Plc's (LON:DCTA) business as it appears the company may be on the cusp of a considerable accomplishment. Directa Plus Plc manufactures and sells graphene-based products for industrial and commercial applications in Italy, Romania, and internationally. The UK£16m market-cap company announced a latest loss of €3.9m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Directa Plus' 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.

See our latest analysis for Directa Plus

According to the 2 industry analysts covering Directa Plus, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €2.0m in 2025. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 103%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Directa Plus' growth isn’t the focus of this broad overview, though, take into account that typically 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 judiciously, with debt making up 35% 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 Directa Plus to cover in one brief article, but the key fundamentals for the company can all be found in one place – Directa Plus' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Historical Track Record: What has Directa Plus' 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 Directa Plus' 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. 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.