Altice Europe NV’s (ENXTAM:ATC): Altice N.V. operates as a cable, fiber, telecommunications, content, and media company in France, the United States, Portugal, Israel, the Dominican Republic, and internationally. The €4.16b market-cap posted a loss in its most recent financial year of -€546.00m and a latest trailing-twelve-month loss of -€901.30m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which ATC will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for ATC, its year of breakeven and its implied growth rate.View out our latest analysis for Altice Europe
Expectation from Media analysts is ATC is on the verge of breakeven. They anticipate the company to incur a final loss in 2018, before generating positive profits of €249.06k in 2019. Therefore, ATC is expected to breakeven roughly a couple of months from now! What rate will ATC have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 66.13%, which signals high confidence from analysts. 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, I won’t go into details of ATC’s upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with ATC is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
This article is not intended to be a comprehensive analysis on ATC, so if you are interested in understanding the company at a deeper level, take a look at ATC’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further examine:
- Valuation: What is ATC 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 ATC is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Altice Europe’s board and the CEO’s back ground.
- 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.