Delivery Hero SE (ETR:DHER): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Delivery Hero SE's (ETR:DHER) future prospects. Delivery Hero SE offers online food ordering and delivery services. The €7.9b market-cap company announced a latest loss of €882m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Delivery Hero's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Delivery Hero is bordering on breakeven, according to the 17 German Hospitality analysts. They expect the company to post a final loss in 2025, before turning a profit of €9.1m in 2026. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 96% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Delivery Hero's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Delivery Hero

One thing we would like to bring into light with Delivery Hero is its debt-to-equity ratio of 192%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Delivery Hero which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Delivery Hero, take a look at Delivery Hero's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Delivery Hero 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 Delivery Hero 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 Delivery Hero’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.