Yahoo Finance Breakeven On The Horizon For creditshelf Aktiengesellschaft (ETR:CSQ)
creditshelf Aktiengesellschaft's (ETR:CSQ): creditshelf Aktiengesellschaft operates as an online SME financing company in Germany. On 31 December 2019, the €75m market-cap posted a loss of -€5.0m for its most recent financial year. As path to profitability is the topic on CSQ’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for CSQ’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for creditshelf
CSQ is bordering on breakeven, according to the 2 Diversified Financial analysts. They expect the company to post a final loss in 2021, before turning a profit of €1.3m in 2022. So, CSQ is predicted to breakeven approximately 2 years from today. What rate will CSQ 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 73%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving CSQ’s growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. CSQ currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. This means that CSQ 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:
This article is not intended to be a comprehensive analysis on CSQ, so if you are interested in understanding the company at a deeper level, take a look at CSQ’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further examine:
Historical Track Record: What has CSQ's 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 creditshelf’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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
