Analysts Expect medondo holding AG (ETR:AMI) To Breakeven Soon

We feel now is a pretty good time to analyse medondo holding AG's (ETR:AMI) business as it appears the company may be on the cusp of a considerable accomplishment. medondo holding AG, provides service solutions in Germany. The €19m market-cap company’s loss lessened since it announced a €5.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of €4.9m, as it approaches breakeven. The most pressing concern for investors is medondo holding's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for medondo holding

medondo holding is bordering on breakeven, according to some German IT analysts. They expect the company to post a final loss in 2023, before turning a profit of €100k in 2024. 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 114% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving medondo holding's growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 16% 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 too many aspects of medondo holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – medondo holding's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Valuation: What is medondo 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 medondo 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 medondo 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.