When Will Rubean AG (FRA:R1B) Breakeven?

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. On 31 December 2023, the €16m market-cap company posted a loss of €1.6m for its most recent financial year. As path to profitability is the topic on Rubean's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Rubean

Consensus from 2 of the German Software analysts is that Rubean is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €700k in 2026. So, the company is predicted to breakeven just over a year from now. 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 66%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Rubean given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Rubean has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

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 put together a list of relevant factors you should further examine:

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.

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.