Amoéba S.A. (EPA:ALMIB): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Amoéba S.A.'s (EPA:ALMIB) future prospects. Amoéba S.A. develops biological products and services for the treatment of microbiological risk in the sectors of water, health, and plant protection in France. The €72m market-cap company posted a loss in its most recent financial year of €6.6m and a latest trailing-twelve-month loss of €7.4m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Amoéba'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.

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According to the 3 industry analysts covering Amoéba, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of €550k in 2027. So, the company is predicted to breakeven approximately 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 66%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Amoéba's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Amoéba

One thing we would like to bring into light with Amoéba is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Amoéba 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 Amoéba, take a look at Amoéba's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is Amoéba 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 Amoéba 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 Amoéba’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.