Yahoo Finance Coreo AG's (ETR:CORE) Shift From Loss To Profit
With the business potentially at an important milestone, we thought we'd take a closer look at Coreo AG's (ETR:CORE) future prospects. Coreo AG operates as a real estate company in Germany. The €5.9m market-cap company’s loss lessened since it announced a €1.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of €1.6m, as it approaches breakeven. As path to profitability is the topic on Coreo's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Coreo
Expectations from some of the German Capital Markets analysts is that Coreo is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.6m in 2025. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 101% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Coreo's growth isn’t the focus of this broad overview, however, bear in mind that by and large 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 issue worth mentioning. Coreo currently has a 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 too many aspects of Coreo to cover in one brief article, but the key fundamentals for the company can all be found in one place – Coreo's company page on Simply Wall St. We've also put together a list of key 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.
