Azerion Group N.V. (AMS:AZRN) Is Expected To Breakeven In The Near Future

With the business potentially at an important milestone, we thought we'd take a closer look at Azerion Group N.V.'s (AMS:AZRN) future prospects. Azerion Group N.V. operates a digital entertainment and media platform worldwide. With the latest financial year loss of €134m and a trailing-twelve-month loss of €12m, the €259m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Azerion Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Azerion Group

Consensus from 3 of the Dutch Interactive Media and Services analysts is that Azerion Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of €5.2m in 2024. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 103% is expected, 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.

Underlying developments driving Azerion Group's growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Azerion Group is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Azerion Group 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 Azerion Group 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 Azerion 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.