Yolo Group S.p.A. (BIT:YOLO): Is Breakeven Near?

Yolo Group S.p.A. (BIT:YOLO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Yolo Group S.p.A. provides digital insurance services to the individuals and small and medium-sized enterprises in Italy. The €14m market-cap company announced a latest loss of €2.7m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Yolo Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Yolo Group

Yolo Group is bordering on breakeven, according to some Italian Insurance analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.2m in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 99% year-on-year, on average, which is rather optimistic! 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 Yolo Group's upcoming projects, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 34% 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:

This article is not intended to be a comprehensive analysis on Yolo Group, so if you are interested in understanding the company at a deeper level, take a look at Yolo Group's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Yolo Group'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yolo 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. 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.