With the business potentially at an important milestone, we thought we’d take a closer look at Distribution Finance Capital Holdings plc (LON:DFCH) future prospects. Distribution Finance Capital Holdings plc, an investment holding company, operates in the United Kingdom as a personal savings and commercial lending bank. The UK£65m market-cap company’s losses narrowed as it announced a loss of UK£3.7m for the full financial year, compared with its latest trailing-twelve-month loss of UK£1.3m, as it Getting closer to breakeven. Distribution Finance Capital Holdings’ path to profitability is the biggest concern for investors – when will it break even? In this article, we’ll touch on the company’s growth expectations and when analysts expect it to become profitable.
Check out our latest analysis for Distribution Finance Capital holdings
The consensus of 2 British diversified financial analysts is that Distribution Finance Capital Holdings is on the brink of collapse. They expect the company to post a final loss in 2022, before turning a profit of UK£4.8m in 2023. Therefore, the company is projected to break even approximately 12 months from now or less. At what rate does the company need to grow to meet consensus estimates forecasting break even in less than 12 months? Using a line of best fit, we calculate an average annual growth rate of 83%, which is rather optimistic! If that rate turns too aggressive, the company could turn profitable much later than analysts predict.
earnings per share growth
Given that this is a high-level overview, we won’t go into the details of Distribution Finance Capital Holdings’ upcoming projects, however, bear in mind that a high growth rate in general is not out of the ordinary, especially when a During the period of investment of the company.
One thing we would like to point out is that the company has managed its capital judiciously, wherein debt is 0.06% of the equity. This means that it has financed its operations primarily from equity capital, and its low debt obligations reduce the risk of investing in a loss-making company.
Next steps:
This article is not intended to be a comprehensive analysis on Distribution Finance Capital Holdings, so if you are interested in understanding the company on a deeper level, simply take a look at Distribution Finance Capital Holdings’ company page on Wall St. We have also compiled a list of relevant factors that you should investigate further:
historical track record: How has Distribution Finance Capital Holdings performed in the past? Go into more detail in the past track record analysis and take a look at our free visual presentations of our analysis for more clarity.
management team: An experienced management team at the helm adds to our confidence in the business – Take a look at who sits on the Distribution Finance Capital Holdings board and the CEO’s background.
Other High Performing Stocks: Are there other stocks with proven track records that offer better upside potential? Check out our free list of these great stocks here.
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This Simply Wall St article is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock, and does not take into account 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 Street has no position in any of the stocks mentioned.
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