XTPL S.A. (WSE:XTP) About To Shift From Loss To Profit

XTPL S.A. (WSE:XTP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. XTPL S.A. develops additive manufacturing technology for ultra-precise printing of nanomaterials in Poland and internationally. The company’s loss has recently broadened since it announced a zł2.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of zł2.7m, moving it further away from breakeven. As path to profitability is the topic on XTPL's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for XTPL

According to some industry analysts covering XTPL, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of zł3.1m in 2024. 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 132% 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.

Underlying developments driving XTPL's growth isn’t the focus of this broad overview, though, bear 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. XTPL currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

1. Valuation: What is XTPL 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 XTPL 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 XTPL’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.