Yahoo Finance PensionBee Group plc's (LON:PBEE) Profit Outlook
We feel now is a pretty good time to analyse PensionBee Group plc's (LON:PBEE) business as it appears the company may be on the cusp of a considerable accomplishment. PensionBee Group plc, a direct-to-consumer financial technology company, provides online pension services in the United Kingdom. The UK£169m market-cap company announced a latest loss of UK£22m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on PensionBee Group'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.
See our latest analysis for PensionBee Group
Consensus from 6 of the British Capital Markets analysts is that PensionBee Group is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of UK£4.3m in 2025. The company is therefore projected to breakeven around 2 years from now. 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 70%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for PensionBee Group given that this is a high-level summary, however, keep in mind that generally 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. PensionBee Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 PensionBee Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – PensionBee Group's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Historical Track Record: What has PensionBee Group'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 PensionBee Group'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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