Analysts Expect SFC Energy AG (ETR:F3C) To Breakeven Soon

SFC Energy AG (ETR:F3C) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SFC Energy AG develops, produces, and distributes power generation systems and components for off-grid and on-grid applications based on fuel cells and other technologies in North America, Germany, rest of Europe, Asia, and internationally. The company’s loss has recently broadened since it announced a €1.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of €2.8m, moving it further away from breakeven. The most pressing concern for investors is SFC Energy'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.

Check out our latest analysis for SFC Energy

Consensus from 4 of the German Electrical analysts is that SFC Energy is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of €1.5m in 2021. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 126%, 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 SFC Energy given that this is a high-level summary, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 9.9% 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:

This article is not intended to be a comprehensive analysis on SFC Energy, so if you are interested in understanding the company at a deeper level, take a look at SFC Energy's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is SFC Energy 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 SFC Energy 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 SFC Energy’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’re looking to trade SFC Energy, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide 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.