With the business potentially at an important milestone, we thought we'd take a closer look at Meyer Burger Technology AG's (VTX:MBTN) future prospects. Meyer Burger Technology AG, a technology company, produces and sells solar cells and modules primarily in Switzerland. On 31 December 2022, the CHF2.1b market-cap company posted a loss of CHF70m for its most recent financial year. Many investors are wondering about the rate at which Meyer Burger Technology 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 Meyer Burger Technology
Meyer Burger Technology is bordering on breakeven, according to the 11 Swiss Semiconductor analysts. They expect the company to post a final loss in 2023, before turning a profit of CHF69m in 2024. So, the company is predicted to breakeven just over a year from today. 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 71% 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.
Given this is a high-level overview, we won’t go into details of Meyer Burger Technology's upcoming projects, though, take into account 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 issue worth mentioning. Meyer Burger Technology currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Meyer Burger Technology's case is 51%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Meyer Burger Technology 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 Meyer Burger Technology, take a look at Meyer Burger Technology's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
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Valuation: What is Meyer Burger Technology 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 Meyer Burger Technology is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Meyer Burger Technology’s board and the CEO’s background.
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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.