We feel now is a pretty good time to analyse Symphony Environmental Technologies plc's (LON:SYM) business as it appears the company may be on the cusp of a considerable accomplishment. Symphony Environmental Technologies plc, together with its subsidiaries, develops and supplies environmental plastic additives and masterbatches in the United Kingdom, Europe, North America, Central and South America, the Middle East, and Asia. The UK£34m market-cap company announced a latest loss of UK£1.4m on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which Symphony Environmental Technologies will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Symphony Environmental Technologies is bordering on breakeven, according to some British Chemicals analysts. They expect the company to post a final loss in 2021, before turning a profit of UK£122k in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 99% 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 Symphony Environmental Technologies' upcoming projects, but, take into account that by and large 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 19% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on Symphony Environmental Technologies, so if you are interested in understanding the company at a deeper level, take a look at Symphony Environmental Technologies' company page on Simply Wall St. We've also put together a list of key factors you should further research:
Historical Track Record: What has Symphony Environmental Technologies' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Symphony Environmental Technologies' 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.