Yahoo Movies Meyer Burger Technology AG's (VTX:MBTN) Profit Outlook
Meyer Burger Technology AG (VTX:MBTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Meyer Burger Technology AG, a technology company, produces and sells solar cells and modules primarily in Switzerland. The CHF1.8b market-cap company posted a loss in its most recent financial year of CHF100m and a latest trailing-twelve-month loss of CHF104m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Meyer Burger Technology's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Meyer Burger Technology
Meyer Burger Technology is bordering on breakeven, according to the 7 Swiss Semiconductor analysts. They expect the company to post a final loss in 2022, before turning a profit of CHF26m in 2023. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, which is extremely buoyant. 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 Meyer Burger Technology's upcoming projects, however, keep in mind that by and large 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 debt-to-equity ratio of 106%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around 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 put together a list of pertinent factors you should further research:
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.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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