Loss-Making INTERSHOP Communications Aktiengesellschaft (ETR:ISHA) Expected To Breakeven In The Medium-Term

INTERSHOP Communications Aktiengesellschaft (ETR:ISHA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. INTERSHOP Communications Aktiengesellschaft offers B2B ecommerce solutions in Germany and internationally. With the latest financial year loss of €353k and a trailing-twelve-month loss of €2.3m, the €15m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is INTERSHOP Communications' 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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

According to the 3 industry analysts covering INTERSHOP Communications, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of €1.1m in 2027. The company is therefore projected to breakeven around 2 years 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 97%, which signals high confidence from analysts. 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 INTERSHOP Communications given that this is a high-level summary, however, bear in mind that typically 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 INTERSHOP Communications

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 27% 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 INTERSHOP Communications to cover in one brief article, but the key fundamentals for the company can all be found in one place – INTERSHOP Communications' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Valuation: What is INTERSHOP Communications 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 INTERSHOP Communications 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 INTERSHOP Communications’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.