AmpliTech Group, Inc. (NASDAQ:AMPG) On The Verge Of Breaking Even
AmpliTech Group, Inc. (NASDAQ:AMPG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AmpliTech Group, Inc. designs, engineers, and assembles micro-wave component-based amplifiers. With the latest financial year loss of US$677k and a trailing-twelve-month loss of US$2.8m, the US$17m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which AmpliTech Group will turn a profit, with the big question being “when will the company breakeven?” 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 AmpliTech Group
According to some industry analysts covering AmpliTech Group, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$3.6m in 2024. So, the company is predicted to breakeven approximately 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 178% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving AmpliTech Group's growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.4% 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:
There are too many aspects of AmpliTech Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – AmpliTech Group's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Valuation: What is AmpliTech Group 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 AmpliTech Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AmpliTech Group’s board and the CEO’s background.
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.
