Singulus Technologies AG (ETR:SNG) About To Shift From Loss To Profit

We feel now is a pretty good time to analyse Singulus Technologies AG's (ETR:SNG) business as it appears the company may be on the cusp of a considerable accomplishment. Singulus Technologies AG develops and assembles machines and systems for thin-film coating and surface treatment processes in the photovoltaics, semiconductor, medical technology, packaging, glass and automotive, and battery and hydrogen markets worldwide. The €13m market-cap company announced a latest loss of €9.8m on 31 December 2023 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Singulus Technologies

Singulus Technologies is bordering on breakeven, according to the 2 German Machinery analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of €2.4m in 2024. The company is therefore projected to breakeven around 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 128% is expected, 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 Singulus Technologies given that this is a high-level summary, though, 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 issue worth mentioning. Singulus Technologies currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Singulus Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Singulus Technologies' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Historical Track Record: What has Singulus Technologies' 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 Singulus Technologies' 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.

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