Ten Lifestyle Group Plc’s (LON:TENG): Ten Lifestyle Group Plc provides concierge services to private banks, retail banks, premium payment card providers, and high-net-worth individuals worldwide. On 31 August 2019, the UK£107m market-cap posted a loss of -UK£8.3m for its most recent financial year. As path to profitability is the topic on TENG’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for TENG.
See our latest analysis for Ten Lifestyle Group
Consensus from the 2 Online Retail analysts is TENG is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of UK£4.5m in 2021. TENG is therefore projected to breakeven around a couple of months from now! How fast will TENG have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 95% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
AIM:TENG Past and Future Earnings, January 9th 2020
Underlying developments driving TENG’s growth isn’t the focus of this broad overview, but, take into account 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 I’d like to point out is that TENG has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that TENG has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of TENG 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 TENG, take a look at TENG’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further examine:
- Valuation: What is TENG 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 TENG 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 Ten Lifestyle Group’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 editorial-team@simplywallst.com. 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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