Pyramid AG (ETR:M3BK) On The Verge Of Breaking Even

Pyramid AG (ETR:M3BK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Pyramid AG develops and manufactures information technology solutions for the retail and hospitality market. The €27m market-cap company announced a latest loss of €5.0m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Pyramid'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 Pyramid

Pyramid is bordering on breakeven, according to the 2 German Tech analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of €1.5m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 83% is expected, 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 Pyramid given that this is a high-level summary, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 25% 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 Pyramid to cover in one brief article, but the key fundamentals for the company can all be found in one place – Pyramid's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is Pyramid 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 Pyramid 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 Pyramid’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.