Rubean AG's (FRA:R1B) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at Rubean AG's (FRA:R1B) future prospects. Rubean AG, a fintech company, provides software point-of-sale solutions to banks, acquirers, and merchants. The €23m market-cap company announced a latest loss of €1.6m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Rubean will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Rubean

Rubean is bordering on breakeven, according to the 2 German Software analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €750k in 2026. Therefore, the company is expected to breakeven roughly 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 68%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Rubean's growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Rubean currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Rubean 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 Rubean, take a look at Rubean's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is Rubean 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 Rubean 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 Rubean’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.