Superloop Limited (ASX:SLC) Is Expected To Breakeven In The Near Future

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. The AU$707m market-cap company’s loss lessened since it announced a AU$43m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$40m, as it approaches breakeven. As path to profitability is the topic on Superloop's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Superloop

Superloop is bordering on breakeven, according to the 5 Australian Telecom analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$14m in 2025. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 105% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

We're not going to go through company-specific developments for Superloop given that this is a high-level summary, 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 14% 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 put together a list of key factors you should further research:

1. 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.

2. 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.

3. 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.