Auction Technology Group plc (LON: ATG) may be approaching a major achievement in his business so we want to shed some light on the company. Auction Technology Group plc operates marketplaces and its own auction platform in Great Britain, the USA, Austria, Germany and Switzerland. The company, with a market capitalization of £ 985 million, announced a recent loss of £ 16 million for its most recent financial year on September 30, 2020. Many investors wonder at what speed the Auction Technology Group will turn a profit. The big question is, “When will the company break even?” In this article, we’re going to look at expectations for the company’s growth and when analysts expect it to become profitable.
Two of the UK’s online retail analysts agree that Auction Technology Group is about to break even. They expect the company to post a final loss in 2021 before turning in a profit of £ 9.7m in 2022. Hence, the company is expected to break even in just over a year. In order to meet this breakeven date, we calculated the company’s growth rate compared to the previous year. It turns out that it is expecting an average annual growth rate of 89%, which is pretty optimistic! If this rate turns out to be too aggressive, the company can become profitable much later than analysts predict.
Since this is a high-level overview, we will not go into details of the Auction Technology Group’s upcoming projects. Note, however, that a high projected growth rate is by and large not uncommon for a company that is currently in an investment period.
Before we finish, there is one topic worth mentioning. Auction Technology Group currently has negative equity on its balance sheet. This can sometimes be due to accounting policies that treat accumulated losses from prior years that are considered to be a liability carried forward until canceled in the future. These losses usually only appear on paper, but in other cases it can be a warning.
There are important fundamentals of the Auction Technology Group that are not covered in this article. However, we need to reiterate that this is just a basic overview. Further information on the Auction Technology Group can be found at The Auction Technology Group’s corporate website on Simply Wall St.. We have also compiled a list of relevant issues that you should investigate further:
rating: What is the Auction Technology Group worth today? Has the future growth potential already been taken into account in the price? The Infographic with the intrinsic value in our free research report helps illustrate whether the Auction Technology Group is currently being mispriced by the market.
Management team: An experienced management team at the top strengthens our confidence in the business – take a look who sits on the board of the Auction Technology Group and in the background of the CEO.
Other high performing stocks: Are there other stocks that offer better prospects with proven track records? Discover our free list of these great stocks here.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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