Yahoo Finance Analysts Expect Kooth plc (LON:KOO) To Breakeven Soon
Kooth plc (LON:KOO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kooth plc, together with its subsidiaries, provides digital mental health services to children, young people, and adults in the United Kingdom. With the latest financial year loss of UK£716k and a trailing-twelve-month loss of UK£899k, the UK£107m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Kooth'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 Kooth
According to the 5 industry analysts covering Kooth, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of UK£1.6m in 2024. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% year-on-year, on average, 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 Kooth's upcoming projects, however, bear in mind that by and large 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 Kooth has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Kooth 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 Kooth, take a look at Kooth's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:
Valuation: What is Kooth 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 Kooth 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 Kooth’s board and the CEO’s background.
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.
