Analysts Are Optimistic We'll See A Profit From Singulus Technologies AG (ETR:SNG)

With the business potentially at an important milestone, we thought we'd take a closer look at Singulus Technologies AG's (ETR:SNG) future prospects. Singulus Technologies AG develops and assembles machines and systems for thin-film coating and surface treatment processes worldwide. The €15m market-cap company announced a latest loss of €5.4m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Singulus Technologies will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Consensus from 3 of the German Machinery analysts is that Singulus Technologies is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.8m in 2025. Therefore, the company is expected to breakeven roughly 12 months 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 90% is expected, which is rather optimistic! 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 Singulus Technologies' upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Singulus Technologies

One thing we would like to bring into light with Singulus Technologies is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Singulus Technologies which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Singulus Technologies, take a look at Singulus Technologies' company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is Singulus Technologies 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 Singulus Technologies 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 Singulus Technologies’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.