Analysts Expect Datrix S.p.A. (BIT:DATA) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Datrix S.p.A.'s (BIT:DATA) future prospects. Datrix S.p.A. engages in developing artificial intelligence based solutions of augmented analytics and machine learning. With the latest financial year loss of €2.4m and a trailing-twelve-month loss of €2.8m, the €47m 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?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Datrix

Expectations from some of the Italian Software analysts is that Datrix is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of €1.3m in 2023. Therefore, the company is expected to breakeven roughly 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 112% is expected, which signals high confidence from analysts. 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 Datrix's upcoming projects, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 15% 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 put together a list of important factors you should look at:

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.

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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.