Yolo Group S.p.A. (BIT:YOLO): When Will It Breakeven?

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. On 31 December 2023, the €15m market-cap company posted a loss of €2.7m for its most recent financial year. Many investors are wondering about the rate at which Yolo Group 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 Yolo Group

Expectations from some of the Italian Insurance analysts is that Yolo Group is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €1.2m 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 99%, 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 Yolo Group's upcoming projects, however, bear in mind that generally 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 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:

There are too many aspects of Yolo Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Yolo Group's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

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.