Meyer Burger Technology AG (VTX:MBTN) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Meyer Burger Technology AG's (VTX:MBTN) business as it appears the company may be on the cusp of a considerable accomplishment. Meyer Burger Technology AG, a technology company, produces and sells solar cells and modules. With the latest financial year loss of CHF70m and a trailing-twelve-month loss of CHF94m, the CHF960m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Meyer Burger Technology's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Meyer Burger Technology
According to the 9 industry analysts covering Meyer Burger Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CHF106m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 74% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Meyer Burger Technology given that this is a high-level summary, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Meyer Burger Technology is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Meyer Burger Technology's case is 92%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Meyer Burger Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Meyer Burger Technology's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Valuation: What is Meyer Burger Technology 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 Meyer Burger Technology 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 Meyer Burger Technology’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.
