MPC Münchmeyer Petersen Capital AG's (ETR:MPCK) Has Found A Path To Profitability

MPC Münchmeyer Petersen Capital AG (ETR:MPCK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. MPC Münchmeyer Petersen Capital AG is a publicly owned investment manager. The €87m market-cap company announced a latest loss of €853k on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on MPC Münchmeyer Petersen Capital's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for MPC Münchmeyer Petersen Capital

MPC Münchmeyer Petersen Capital is bordering on breakeven, according to the 3 German Capital Markets analysts. They expect the company to post a final loss in 2020, before turning a profit of €4.1m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 58% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving MPC Münchmeyer Petersen Capital's growth isn’t the focus of this broad overview, but, 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.8% 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:

This article is not intended to be a comprehensive analysis on MPC Münchmeyer Petersen Capital, so if you are interested in understanding the company at a deeper level, take a look at MPC Münchmeyer Petersen Capital's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has MPC Münchmeyer Petersen Capital'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 MPC Münchmeyer Petersen Capital'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. 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.
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