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

mVISE AG (ETR:C1V) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. mVISE AG provides IT consultancy services in Germany. On 31 December 2024, the €13m market-cap company posted a loss of €4.0m for its most recent financial year. As path to profitability is the topic on mVISE'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.

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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. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 113%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for mVISE given that this is a high-level summary, though, 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.

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%. Generally, the rule of thumb is 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 relevant aspects you should further examine:

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.