Yahoo Finance Schweizer Electronic AG's (ETR:SCE) Profit Outlook
We feel now is a pretty good time to analyse Schweizer Electronic AG's (ETR:SCE) business as it appears the company may be on the cusp of a considerable accomplishment. Schweizer Electronic AG, together with its subsidiaries, develops, produces, and distributes printed circuit boards (PCBs) worldwide. The €15m market-cap company’s loss lessened since it announced a €26m loss in the full financial year, compared to the latest trailing-twelve-month loss of €26m, as it approaches breakeven. As path to profitability is the topic on Schweizer Electronic'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.
Check out our latest analysis for Schweizer Electronic
According to some industry analysts covering Schweizer Electronic, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €4.7m in 2024. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 93% year-on-year, on average, which is rather optimistic! 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 Schweizer Electronic's upcoming projects, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Schweizer Electronic is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Schweizer Electronic to cover in one brief article, but the key fundamentals for the company can all be found in one place – Schweizer Electronic's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Historical Track Record: What has Schweizer Electronic's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Schweizer Electronic'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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