Breakeven On The Horizon For Eagle Eye Solutions Group plc (LON:EYE)

Eagle Eye Solutions Group plc (LON:EYE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Eagle Eye Solutions Group plc, together with its subsidiaries, provides marketing technology software as a service solutions in the United Kingdom, North America, rest of Europe, and Asia Pacific. The UK£97m market-cap company announced a latest loss of UK£454k on 30 June 2020 for its most recent financial year result. As path to profitability is the topic on Eagle Eye Solutions Group's investors mind, we've decided to gauge market sentiment. 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 Eagle Eye Solutions Group

Consensus from 2 of the British IT analysts is that Eagle Eye Solutions Group is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of UK£217k in 2022. Therefore, the company is expected to breakeven roughly 2 years from today. 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 95% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Eagle Eye Solutions Group given that this is a high-level summary, though, bear in mind 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 Eagle Eye Solutions Group has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Eagle Eye Solutions Group 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 Eagle Eye Solutions Group, take a look at Eagle Eye Solutions Group's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Valuation: What is Eagle Eye Solutions Group 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 Eagle Eye Solutions Group 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 Eagle Eye Solutions Group’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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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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