Analysts Expect creditshelf Aktiengesellschaft (ETR:CSQ) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at creditshelf Aktiengesellschaft's (ETR:CSQ) future prospects. creditshelf Aktiengesellschaft operates as a digital small and medium-sized enterprises financing company in Germany. With the latest financial year loss of €784k and a trailing-twelve-month loss of €2.1m, the €16m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on creditshelf's 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.

Check out our latest analysis for creditshelf

creditshelf is bordering on breakeven, according to some German Diversified Financial analysts. They expect the company to post a final loss in 2022, before turning a profit of €600k in 2023. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for creditshelf given that this is a high-level summary, 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 we’d like to point out is that creditshelf has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of creditshelf to cover in one brief article, but the key fundamentals for the company can all be found in one place – creditshelf's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has creditshelf'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 creditshelf'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.