When Will Tribe Technology PLC (LON:TRYB) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Tribe Technology PLC's (LON:TRYB) future prospects. Tribe Technology PLC is a holding company that through its subsidiary develops, manufactures, and sells autonomous mining equipment in Australia and Northern Ireland. On 30 June 2023, the UK£13m market-cap company posted a loss of UK£3.3m for its most recent financial year. The most pressing concern for investors is Tribe Technology's path to profitability – when will it breakeven? 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 Tribe Technology
Expectations from some of the British Machinery analysts is that Tribe Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of UK£833k in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 45%, which is rather optimistic! 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 Tribe Technology given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Tribe Technology 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Tribe Technology 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 Tribe Technology, take a look at Tribe Technology's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:
Historical Track Record: What has Tribe Technology's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tribe 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.
