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. On 31 December 2021, the CHF1.1b market-cap company posted a loss of CHF100m 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.
See our latest analysis for Meyer Burger Technology
Meyer Burger Technology is bordering on breakeven, according to the 6 Swiss Semiconductor analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of CHF61m in 2023. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 56%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We’re not going to go through company-specific developments for Meyer Burger Technology given that this is a high-level summary, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Meyer Burger Technology currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Meyer Burger Technology’s case is 69%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Meyer Burger Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Meyer Burger Technology’s company page on Simply Wall St. We’ve also put together a list of key aspects you should look at:
- 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.
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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.