Loss-Making Hoffmann Green Cement Technologies Societe anonyme (EPA:ALHGR) Expected To Breakeven In The Medium-Term

Hoffmann Green Cement Technologies Societe anonyme (EPA:ALHGR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hoffmann Green Cement Technologies Societe anonyme designs, produces, distributes, and markets low carbon cements. The €145m market-cap company announced a latest loss of €7.9m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Hoffmann Green Cement Technologies Societe anonyme's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Hoffmann Green Cement Technologies Societe anonyme

Hoffmann Green Cement Technologies Societe anonyme is bordering on breakeven, according to the 3 French Basic Materials analysts. They expect the company to post a final loss in 2024, before turning a profit of €4.0m in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 99% year-on-year, on average, 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 Hoffmann Green Cement Technologies Societe anonyme given that this is a high-level summary, though, take into account that typically 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 26% 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 Societe 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 Societe anonyme's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. Valuation: What is Hoffmann Green Cement Technologies Societe 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 Societe 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 Societe 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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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.