Yahoo Finance Analysts Are Optimistic We'll See A Profit From Superdry plc (LON:SDRY)
With the business potentially at an important milestone, we thought we'd take a closer look at Superdry plc's (LON:SDRY) future prospects. Superdry plc engages in the design, production, and sale of clothing and accessories primarily under the Superdry brand for men and women in the United Kingdom, the Republic of Ireland, Europe, and internationally. On 24 April 2021, the UK£212m market-cap company posted a loss of UK£36m for its most recent financial year. Many investors are wondering about the rate at which Superdry 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.
View our latest analysis for Superdry
Consensus from 7 of the British Specialty Retail analysts is that Superdry is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of UK£5.6m 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 98% 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 Superdry's upcoming projects, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Superdry currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Superdry to cover in one brief article, but the key fundamentals for the company can all be found in one place – Superdry's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is Superdry 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 Superdry 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 Superdry’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.
