With the business potentially at an important milestone, we thought we'd take a closer look at Bigblu Broadband plc's (LON:BBB) future prospects. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in the United Kingdom, Europe, and internationally. With the latest financial year loss of UK£4.9m and a trailing-twelve-month loss of UK£1.2m, the UK£39m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Bigblu Broadband'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.
According to some industry analysts covering Bigblu Broadband, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of UK£5.9m in 2022. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 26% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Bigblu Broadband's upcoming projects, but, keep in mind that typically 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 40% 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.
There are key fundamentals of Bigblu Broadband 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 Bigblu Broadband, take a look at Bigblu Broadband's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
- Historical Track Record: What has Bigblu Broadband'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bigblu Broadband'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. 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.