Yahoo Finance Analysts Are Optimistic We'll See A Profit From medondo holding AG (ETR:AMI)
medondo holding AG (ETR:AMI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. medondo holding AG, provides service solutions in Germany. With the latest financial year loss of €5.3m and a trailing-twelve-month loss of €4.9m, the €11m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on medondo holding'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.
See our latest analysis for medondo holding
According to some industry analysts covering medondo holding, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €100k in 2024. So, the company is predicted to breakeven approximately 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 114% 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.
Underlying developments driving medondo holding's growth isn’t the focus of this broad overview, however, keep 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 16% 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 medondo holding, so if you are interested in understanding the company at a deeper level, take a look at medondo holding's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:
Valuation: What is medondo holding 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 medondo holding 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 medondo holding’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.
