Bigblu Broadband plc’s (LON:BBB): Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in the United Kingdom, Europe, Australia, and internationally. The UK£40m market-cap company’s loss lessens since it announced a -UK£13.3m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -UK£8.4m, as it approaches breakeven. The most pressing concern for investors is BBB’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for BBB.
See our latest analysis for Bigblu Broadband
BBB is bordering on breakeven, according to Telecom analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of UK£2.8m in 2020. So, BBB is predicted to breakeven approximately a couple of months from now! How fast will BBB have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 102% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
AIM:BBB Past and Future Earnings March 27th 2020
Underlying developments driving BBB’s growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one issue worth mentioning. BBB currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and BBB has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of BBB which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at BBB, take a look at BBB’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further examine:
- Valuation: What is BBB 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 BBB 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 Bigblu Broadband’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 [email protected]. 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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