Market Sentiment Around Loss-Making Meyer Burger Technology AG (VTX:MBTN)

With the business potentially at an important milestone, we thought we'd take a closer look at Meyer Burger Technology AG's (VTX:MBTN) future prospects. Meyer Burger Technology AG, a technology company, produces and sells solar cells and modules. The CHF887m market-cap company posted a loss in its most recent financial year of CHF70m and a latest trailing-twelve-month loss of CHF94m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Meyer Burger Technology 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.

View 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 now. 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 74% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Meyer Burger Technology's growth isn’t the focus of this broad overview, though, 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.

Before we wrap up, there’s one issue worth mentioning. Meyer Burger Technology currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Meyer Burger Technology's case is 92%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Meyer Burger Technology, so if you are interested in understanding the company at a deeper level, take a look at Meyer Burger Technology's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. 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.
2. 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.
3. 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.