We feel now is a pretty good time to analyse Superloop Limited's (ASX:SLC) business as it appears the company may be on the cusp of a considerable accomplishment. Superloop Limited, together with its subsidiaries, operates as a telecommunications and internet service provider in Australia. The AU$1.1b market-cap company announced a latest loss of AU$15m on 30 June 2024 for its most recent financial year result. Many investors are wondering about the rate at which Superloop will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Superloop

Consensus from 6 of the Australian Telecom analysts is that Superloop is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$13m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 80%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Superloop's upcoming projects, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 13% 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:

This article is not intended to be a comprehensive analysis on Superloop, so if you are interested in understanding the company at a deeper level, take a look at Superloop's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

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.