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

Singulus Technologies AG (ETR:SNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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. With the latest financial year loss of €9.8m and a trailing-twelve-month loss of €8.2m, the €12m market-cap company alleviated its loss by moving closer towards its target of breakeven. 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?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Singulus Technologies

According to the 2 industry analysts covering Singulus Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €4.0m in 2025. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, 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, though, keep in mind that typically 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. 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

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.