Singulus Technologies AG (ETR:SNG) Could Be Less Than A Year Away From Profitability

We feel now is a pretty good time to analyse Singulus Technologies AG's (ETR:SNG) business as it appears the company may be on the cusp of a considerable accomplishment. Singulus Technologies AG develops and assembles machines and systems for thin-film coating and surface treatment processes in the photovoltaics, semiconductor, medical technology, packaging, glass and automotive, and battery and hydrogen markets worldwide. The €14m market-cap company announced a latest loss of €9.8m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Singulus Technologies' path to profitability – when will it 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 Singulus Technologies

Expectations from some of the German Machinery analysts is that Singulus Technologies is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of €2.4m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 128% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

Underlying developments driving Singulus Technologies' growth isn’t the focus of this broad overview, but, take into account that generally 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 Singulus Technologies is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Singulus Technologies, so if you are interested in understanding the company at a deeper level, take a look at Singulus Technologies' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Singulus Technologies' 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Singulus Technologies' board and the CEO’s background.

3. 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.