Baozun Inc. (NASDAQ:BZUN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Baozun Inc., through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People's Republic of China. The US$177m market-cap company’s loss lessened since it announced a CN¥278m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥234m, as it approaches breakeven. As path to profitability is the topic on Baozun's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Baozun

Consensus from 7 of the American Multiline Retail analysts is that Baozun is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥31m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 96% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Baozun's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 19% 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 Baozun, so if you are interested in understanding the company at a deeper level, take a look at Baozun's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Baozun 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 Baozun 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 Baozun’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.