When Will Meyer Burger Technology AG (VTX:MBTN) Become Profitable?

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. On 31 December 2023, the CHF51m market-cap company posted a loss of CHF292m for its most recent financial year. The most pressing concern for investors is Meyer Burger 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.

See our latest analysis for Meyer Burger Technology

According to the 4 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 just over a year 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 95%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Meyer Burger Technology's growth isn’t the focus of this broad overview, but, keep in mind that by and large 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 debt-to-equity ratio of 182%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which 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 important aspects you should further research:

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.