Yahoo Finance Superloop Limited's (ASX:SLC) Path To Profitability
With the business potentially at an important milestone, we thought we'd take a closer look at Superloop Limited's (ASX:SLC) future prospects. Superloop Limited operates as a telecommunications and internet service provider in Australia. On 30 June 2023, the AU$322m market-cap company posted a loss of AU$43m for its most recent financial year. The most pressing concern for investors is Superloop's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Superloop
Superloop is bordering on breakeven, according to the 5 Australian Telecom analysts. They expect the company to post a final loss in 2025, before turning a profit of AU$457k in 2026. So, the company is predicted to breakeven approximately 3 years 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 76%, which signals high confidence from analysts. 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 Superloop's upcoming projects, but, 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.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 12% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Superloop to cover in one brief article, but the key fundamentals for the company can all be found in one place – Superloop's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:
Valuation: What is Superloop 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 Superloop 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 Superloop’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.
