Hoffmann Green Cement Technologies Société anonyme (EPA:ALHGR): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Hoffmann Green Cement Technologies Société anonyme's (EPA:ALHGR) future prospects. Hoffmann Green Cement Technologies Société anonyme manufactures and sells low carbon cement. With the latest financial year loss of €4.3m and a trailing-twelve-month loss of €7.7m, the €471m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Hoffmann Green Cement Technologies Société anonyme's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Hoffmann Green Cement Technologies Société anonyme

Consensus from 2 of the French Basic Materials analysts is that Hoffmann Green Cement Technologies Société anonyme is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of €2.2m in 2023. 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 63%, which signals high confidence from analysts. 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 Hoffmann Green Cement Technologies Société anonyme given that this is a high-level summary, though, take into account 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 12% 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 Hoffmann Green Cement Technologies Société anonyme to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hoffmann Green Cement Technologies Société anonyme'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 Hoffmann Green Cement Technologies Société anonyme 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 Hoffmann Green Cement Technologies Société anonyme 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 Hoffmann Green Cement Technologies Société anonyme’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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