Analysts Expect WALLIX GROUP SA (EPA:ALLIX) To Breakeven Soon
We feel now is a pretty good time to analyse WALLIX GROUP SA's (EPA:ALLIX) business as it appears the company may be on the cusp of a considerable accomplishment. WALLIX GROUP SA publishes and provides cybersecurity software solutions worldwide. With the latest financial year loss of €4.3m and a trailing-twelve-month loss of €1.8m, the €170m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on WALLIX GROUP'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.
Consensus from 2 of the French Software analysts is that WALLIX GROUP is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €5.6m in 2026. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 114% 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.
Given this is a high-level overview, we won’t go into details of WALLIX GROUP's upcoming projects, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Check out our latest analysis for WALLIX GROUP
Before we wrap up, there’s one issue worth mentioning. WALLIX GROUP currently has a debt-to-equity ratio of 106%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on WALLIX GROUP, so if you are interested in understanding the company at a deeper level, take a look at WALLIX GROUP's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:
- Valuation: What is WALLIX GROUP 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 WALLIX GROUP 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 WALLIX 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.
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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.