Breakeven On The Horizon For AmpliTech Group, Inc. (NASDAQ:AMPG)
We feel now is a pretty good time to analyse AmpliTech Group, Inc.'s (NASDAQ:AMPG) business as it appears the company may be on the cusp of a considerable accomplishment. AmpliTech Group, Inc. designs, engineers, and assembles micro-wave component-based amplifiers. The company’s loss has recently broadened since it announced a US$677k loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.4m, moving it further away from breakeven. As path to profitability is the topic on AmpliTech Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for AmpliTech Group
Expectations from some of the American Electronic analysts is that AmpliTech Group is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$3.6m in 2024. Therefore, the company is expected 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 161% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for AmpliTech Group given that this is a high-level summary, but, bear in mind 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 judiciously, with debt making up 0.6% 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 look at:
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.
