mVISE AG's (ETR:C1V) Shift From Loss To Profit

We feel now is a pretty good time to analyse mVISE AG's (ETR:C1V) business as it appears the company may be on the cusp of a considerable accomplishment. mVISE AG provides IT consultancy services in Germany. The €9.3m market-cap company announced a latest loss of €4.0m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is mVISE'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.

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Expectations from some of the German IT analysts is that mVISE is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €400k in 2026. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 113% 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.

Underlying developments driving mVISE's growth isn’t the focus of this broad overview, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for mVISE

Before we wrap up, there’s one issue worth mentioning. mVISE currently has a debt-to-equity ratio of 107%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. 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 key fundamentals of mVISE 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 mVISE, take a look at mVISE's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is mVISE 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 mVISE 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 mVISE’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.