Diebold Nixdorf, Incorporated (NYSE:DBD) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Diebold Nixdorf, Incorporated's (NYSE:DBD) future prospects. Diebold Nixdorf, Incorporated provides connected commerce solutions to financial institutions and retailers in Western Europe, Eastern Europe, Asia, the Middle East, Africa, the United States, Canada, Mexico, and Latin America. With the latest financial year loss of US$269m and a trailing-twelve-month loss of US$92m, the US$756m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Diebold Nixdorf'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.
See our latest analysis for Diebold Nixdorf
Diebold Nixdorf is bordering on breakeven, according to the 5 American Tech analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$149m in 2022. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, 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 Diebold Nixdorf's upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Diebold Nixdorf is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on Diebold Nixdorf, so if you are interested in understanding the company at a deeper level, take a look at Diebold Nixdorf's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
Valuation: What is Diebold Nixdorf 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 Diebold Nixdorf 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 Diebold Nixdorf’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.
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.
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