Yahoo Finance Loss-Making Symphony Environmental Technologies plc (LON:SYM) Set To Breakeven
Symphony Environmental Technologies plc (LON:SYM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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 company’s loss has recently broadened since it announced a UK£1.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£2.2m, moving it further away from breakeven. 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.
See our latest analysis for Symphony Environmental Technologies
According to the 2 industry analysts covering Symphony Environmental Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£1.2m in 2023. The company is therefore projected to breakeven around a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 110%, 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, we won’t go into details of Symphony Environmental Technologies' upcoming projects, though, bear 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 Symphony Environmental Technologies is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Symphony Environmental Technologies' case is 55%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Symphony Environmental Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Symphony Environmental Technologies' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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