Yahoo Finance Marley Spoon AG (ASX:MMM) Is Expected To Breakeven
Marley Spoon AG's (ASX:MMM): Marley Spoon AG provides weekly meal kit services in Australia, the United States, and Europe. The AU$48m market-cap posted a loss in its most recent financial year of -€41.0m and a latest trailing-twelve-month loss of -€43.3m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is MMM’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for MMM’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Marley Spoon
MMM is bordering on breakeven, according to Hospitality analysts. They expect the company to post a final loss in 2021, before turning a profit of €5.2m in 2022. So, MMM is predicted to breakeven approximately 2 years from today. What rate will MMM have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 65%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving MMM’s growth isn’t the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I would like to bring into light with MMM is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of MMM to cover in one brief article, but the key fundamentals for the company can all be found in one place – MMM’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further examine:
Historical Track Record: What has MMM'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 Marley Spoon’s board and the CEO’s back ground.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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