Superloop Limited (ASX:SLC) expected to break even in the near future

With the company potentially reaching a major milestone, we thought we'd take a closer look Superloop Limited (ASX:SLC) future prospects. Superloop Limited operates as a telecommunications and internet service provider in Australia. The A$707 million market capitalization company's loss has narrowed since it reported a full-year loss of A$43 million, compared to its last loss of A$40 million. Australian dollars over the last twelve months, as it approaches the break-even point. With the path to profitability being the topic on Superloop investors' minds, we decided to gauge market sentiment. Below, we'll provide a high-level summary of industry analysts' expectations for the company.

See our latest analysis for Superloop

Superloop is close to break-even, according to 5 Australian Telecom analysts. They predict the company will make a final loss in 2024, before generating positive profits of A$14 million in 2025. The company is therefore expected to break even in just over a year from today 'today. In order to meet this break-even date, we calculated the rate at which the company must grow from year to year. It turns out that an average annual growth rate of 105% is expected, which is quite optimistic! If the business grows at a slower rate, it will become profitable later than expected.

We're not going to go over company-specific developments for Superloop given that this is a high-level summary, but keep in mind that a high growth rate is generally not unusual, particularly when a company is in an investment period.

One thing we want to point out is that the company has managed its capital prudently, with debt making up 14% of equity. This means that it has mainly financed its operations from equity and its low debt reduces the risk of investing in the loss-making company.

Next steps:

There are too many aspects of Superloop to cover in just one brief article, but the company's fundamentals can all be found in one place: Superloop's company page on Simply Wall St. We also have compiled a list of key factors that you should research further:

1. Assessment: What is Superloop worth today? Has 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 at the helm increases our confidence in the company – take a look at the people on the Superloop board and the CEO's background.

3. Other high-performing stocks: Are there other actions offering better prospects and having proven their worth? Check out our free list of these great titles here.

Any feedback on this article? Worried about the content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.