Yahoo Finance Coreo AG's (ETR:CORE) Path To Profitability
Coreo AG (ETR:CORE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Coreo AG operates as a real estate company in Germany. The €8.3m market-cap company announced a latest loss of €1.9m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Coreo's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Coreo
According to some industry analysts covering Coreo, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of €720k in 2024. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 98%, which is rather optimistic! 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 Coreo's upcoming projects, though, keep 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 Coreo is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Coreo which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Coreo, take a look at Coreo's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:
Historical Track Record: What has Coreo'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 Coreo'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.
