Stock Analysis

123fahrschule SE (FRA:123F) Is Expected To Breakeven In The Near Future

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123fahrschule SE (FRA:123F) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 123fahrschule SE engages in driving license training in the German driving school market. The €13m market-cap company announced a latest loss of €4.4m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which 123fahrschule will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for 123fahrschule

According to the 2 industry analysts covering 123fahrschule, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of €600k in 2025. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 78% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

DB:123F Earnings Per Share Growth March 25th 2023

Given this is a high-level overview, we won’t go into details of 123fahrschule's upcoming projects, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 13% of equity. This means that it 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:

There are key fundamentals of 123fahrschule which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at 123fahrschule, take a look at 123fahrschule's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

  1. Valuation: What is 123fahrschule 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 123fahrschule 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 123fahrschule’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.

Valuation is complex, but we're helping make it simple.

Find out whether 123fahrschule is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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