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, provides systems and production equipment in the semiconductor and optoelectronic industries. The company’s loss has recently broadened since it announced a CHF40m loss in the full financial year, compared to the latest trailing-twelve-month loss of CHF80m, moving it further away from breakeven. As path to profitability is the topic on Meyer Burger Technology's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Meyer Burger Technology

Consensus from 4 of the Swiss Semiconductor analysts is that Meyer Burger Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of CHF30m in 2023. 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 60%, which signals high confidence from analysts. 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, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 22% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces 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 compiled a list of key factors you should look at:

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.

If you decide to trade Meyer Burger Technology, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.