Singulus Technologies AG (ETR:SNG) Is Expected To Breakeven In The Near Future

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 in the photovoltaics, semiconductor, medical technology, packaging, glass and automotive, and battery and hydrogen markets worldwide. On 31 December 2024, the €19m market-cap company posted a loss of €5.4m for its most recent financial year. As path to profitability is the topic on Singulus Technologies' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 3 industry analysts covering Singulus Technologies, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of €1.7m in 2026. So, the company is predicted to breakeven just over a year from now. 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 147%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Singulus Technologies' upcoming projects, however, 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.

See 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 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 put together a list of essential 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.