With the company potentially at an important milestone, we thought we would take a closer look Triumph Group, Inc. (NYSE: TGI) future prospects. Triumph Group, Inc. designs, designs, manufactures, repairs, overhauls and distributes aerostructures, aircraft components, accessories, subassemblies and systems worldwide. The market-cap company’s loss of US $ 1.1 billion has declined since it reported a loss of US $ 451 million for the full year, compared to the last loss in the last twelve month of US $ 205 million, as it nears breakeven. As the path to profitability is the topic of concern for Triumph Group investors, we decided to assess market sentiment. Below, we’ll provide a high-level summary of industry analyst expectations for the company.
Check out our latest review for Triumph Group
The consensus of 9 of US aerospace and defense analysts is that Triumph Group is on the verge of breaking even. They predict that the company will experience a terminal loss in 2021, before generating positive profits of US $ 2.6 million in 2022. Thus, the company should break even in about a year or less! We calculated the rate at which the business must grow to meet the consensus forecast predicting breakeven within 12 months. It turns out that an average annual growth rate of 77% is expected, which is extremely sustained. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
The developments underlying the growth of the Triumph Group are not the subject of this overview, but be aware that a high rate of growth is generally not unusual, particularly when a company is in a period of time. investment.
One thing we would like to highlight with Triumph Group is that it currently has negative equity on its balance sheet. The accounting methods used to deal with losses accumulated over time can cause this. In effect, liabilities are carried forward until their cancellation. These losses tend to occur only on paper, however, in other cases this can be a warning.
There are key fundamentals of Triumph Group that are not covered in this article, but we have to stress again that this is only a basic overview. For a more complete overview of Triumph Group, check out the Triumph Group company page on Simply Wall St. We’ve also put together a list of relevant factors you should consider:
- Evaluation: What is Triumph Group worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Triumph Group is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the Triumph Group board members and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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