Meyer Burger Technology AG (VTX:MBTN) Is About To Turn The Corner

Meyer Burger Technology AG (VTX:MBTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Meyer Burger Technology AG, a technology company, produces and sells solar cells and modules. The CHF55m market-cap company posted a loss in its most recent financial year of CHF292m and a latest trailing-twelve-month loss of CHF544m 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.

According to the 3 industry analysts covering Meyer Burger Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of CHF11m in 2025. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 109% is expected, which is extremely buoyant. 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 Meyer Burger Technology's upcoming projects, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Meyer Burger Technology

One thing we would like to bring into light with Meyer Burger Technology is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around 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 put together a list of pertinent factors you should further research:

1. Historical Track Record: What has Meyer Burger 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.
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.