Analysts Expect Wolftank-Adisa Holding AG (ETR:WAH) To Breakeven Soon

We feel now is a pretty good time to analyse Wolftank-Adisa Holding AG's (ETR:WAH) business as it appears the company may be on the cusp of a considerable accomplishment. Wolftank-Adisa Holding AG, together with its subsidiaries, provides specialized technologies for energy and environmental solutions worldwide. The company’s loss has recently broadened since it announced a €1.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of €2.5m, moving it further away from breakeven. Many investors are wondering about the rate at which Wolftank-Adisa Holding 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.

See our latest analysis for Wolftank-Adisa Holding

Wolftank-Adisa Holding is bordering on breakeven, according to the 2 German Commercial Services analysts. They expect the company to post a final loss in 2023, before turning a profit of €3.8m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 102% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Wolftank-Adisa Holding given that this is a high-level summary, though, keep in mind that by and large 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. Wolftank-Adisa Holding currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Wolftank-Adisa Holding's case is 62%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Wolftank-Adisa Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Wolftank-Adisa Holding's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Wolftank-Adisa Holding 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 Wolftank-Adisa Holding 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 Wolftank-Adisa Holding’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.