Breakeven On The Horizon For SLM Solutions Group AG (FRA:AM3D)

SLM Solutions Group AG’s (DB:AM3D): SLM Solutions Group AG provides metal-based additive manufacturing technology solutions in Germany and internationally. With the latest financial year loss of -€3.48M and a trailing-twelve month of -€5.99M, the €608.65M market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on AM3D’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for AM3D’s growth and when analysts expect the company to become profitable.

See our latest analysis for SLM Solutions Group

According to the industry analysts covering AM3D, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of €6.71M in 2018. Therefore, AM3D is expected to breakeven roughly a couple of months from now! In order to meet this breakeven date, I calculated the rate at which AM3D must grow year-on-year. It turns out an average annual growth rate of 120.39% is expected, which is rather optimistic! If this rate turns out to be too aggressive, AM3D may become profitable much later than analysts predict.

DB:AM3D Past Future Earnings Mar 19th 18
DB:AM3D Past Future Earnings Mar 19th 18

Given this is a high-level overview, I won’t go into detail the detail of AM3D’s upcoming projects, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I’d like to point out is that AM3D has managed its capital prudently, with debt making up 18.31% of equity. This means that AM3D 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 AM3D, so if you are interested in understanding the company at a deeper level, take a look at AM3D’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further examine:

  1. Historical Track Record: What has AM3D’s 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 SLM Solutions Group’s board and the CEO’s back ground.
  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.