Breakeven On The Horizon For Juventus Football Club S.p.A. (BIT:JUVE)

With the business potentially at an important milestone, we thought we'd take a closer look at Juventus Football Club S.p.A.'s (BIT:JUVE) future prospects. Juventus Football Club S.p.A. operates as a professional football club in Italy. The company’s loss has recently broadened since it announced a €90m loss in the full financial year, compared to the latest trailing-twelve-month loss of €153m, moving it further away from breakeven. The most pressing concern for investors is Juventus Football Club'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.

See our latest analysis for Juventus Football Club

According to the 2 industry analysts covering Juventus Football Club, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €29m in 2024. So, the company is predicted to breakeven approximately 3 years from today. 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 75%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Juventus Football Club'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.

Before we wrap up, there’s one issue worth mentioning. Juventus Football Club currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Juventus Football Club 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 Juventus Football Club, take a look at Juventus Football Club's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is Juventus Football Club 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 Juventus Football Club 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 Juventus Football Club’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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