Yahoo Finance Analysts Expect NFON AG (ETR:NFN) To Breakeven Soon
We feel now is a pretty good time to analyse NFON AG's (ETR:NFN) business as it appears the company may be on the cusp of a considerable accomplishment. NFON AG provides cloud-based telecommunication services to business customers in Germany, Austria, Italy, the United Kingdom, Spain, Italy, France, and other countries. The €100m market-cap company posted a loss in its most recent financial year of €16m and a latest trailing-twelve-month loss of €3.9m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which NFON 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.
Check out our latest analysis for NFON
NFON is bordering on breakeven, according to the 3 German Telecom analysts. They expect the company to post a final loss in 2023, before turning a profit of €2.2m in 2024. So, the company is predicted to breakeven approximately 12 months 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 108% 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 NFON's upcoming projects, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that NFON has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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 too many aspects of NFON to cover in one brief article, but the key fundamentals for the company can all be found in one place – NFON's company page on Simply Wall St. We've also put together a list of important factors you should further research:
Valuation: What is NFON 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 NFON 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 NFON’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.
