We Might See A Profit From Brockhaus Capital Management AG (FRA:BKHT) Soon

We feel now is a pretty good time to analyse Brockhaus Capital Management AG's (FRA:BKHT) business as it appears the company may be on the cusp of a considerable accomplishment. Brockhaus Capital Management AG operates as a technology holding company that acquires and holds majority stakes in growth companies in the German speaking region. The company’s loss has recently broadened since it announced a €6.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of €8.4m, moving it further away from breakeven. The most pressing concern for investors is Brockhaus Capital Management's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Brockhaus Capital Management

According to the 2 industry analysts covering Brockhaus Capital Management, the consensus is that breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of €3.3m in 2021. The company is therefore projected to breakeven around a year 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 82% is expected, which is extremely buoyant. 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 Brockhaus Capital Management given that this is a high-level summary, though, keep in mind that by and large 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. The company has managed its capital judiciously, with debt making up 1.9% 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 Brockhaus Capital Management to cover in one brief article, but the key fundamentals for the company can all be found in one place – Brockhaus Capital Management's company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. Valuation: What is Brockhaus Capital Management 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 Brockhaus Capital Management 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 Brockhaus Capital Management’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. 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.
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