Stock Analysis

Analysts Expect Breakeven For Datrix S.p.A. (BIT:DATA) Before Long

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BIT:DATA
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We feel now is a pretty good time to analyse Datrix S.p.A.'s (BIT:DATA) business as it appears the company may be on the cusp of a considerable accomplishment. Datrix S.p.A. engages in developing artificial intelligence based solutions of augmented analytics and machine learning. With the latest financial year loss of €2.7m and a trailing-twelve-month loss of €3.7m, the €36m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Datrix will turn a profit, with the big question being “when will the company 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 Datrix

Datrix is bordering on breakeven, according to some Italian Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €2.3m in 2025. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 106% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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BIT:DATA Earnings Per Share Growth December 11th 2023

Underlying developments driving Datrix's growth isn’t the focus of this broad overview, however, 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.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 22% 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:

This article is not intended to be a comprehensive analysis on Datrix, so if you are interested in understanding the company at a deeper level, take a look at Datrix's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

  1. Valuation: What is Datrix 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 Datrix 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 Datrix’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.

Valuation is complex, but we're helping make it simple.

Find out whether Datrix is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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