Analysts Expect ISU Petasys Co., Ltd. (KRX:007660) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at ISU Petasys Co., Ltd.'s (KRX:007660) future prospects. ISU Petasys Co., Ltd. manufactures and sells printed circuit boards (PCBs) worldwide. The ₩155b market-cap company posted a loss in its most recent financial year of ₩91b and a latest trailing-twelve-month loss of ₩80b shrinking the gap between loss and breakeven. The most pressing concern for investors is ISU Petasys' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for ISU Petasys

Expectations from some of the South Korean Electronic analysts is that ISU Petasys is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of ₩4.0b in 2020. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, 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 ISU Petasys' upcoming projects, but, 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. ISU Petasys 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. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of ISU Petasys to cover in one brief article, but the key fundamentals for the company can all be found in one place – ISU Petasys' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is ISU Petasys 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 ISU Petasys 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 ISU Petasys’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.

When trading ISU Petasys or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.