beaconsmind AG (EPA:MLBMD): When Will It Breakeven?

We feel now is a pretty good time to analysis beaconsmind AGs (EPA:MLBMD) business as it appears the company may be on the cusp of a considerable accomplishment. beaconsmind AG offers technology and software solutions for location-based marketing in the areas of retail in Switzerland and internationally. On 30 June 2021, the €25m market-cap company posted a loss of CHF2.1m for its most recent financial year. Many investors are wondering about the rate at which beaconsmind 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 beaconsmind

According to the 2 industry analysts covering beaconsmind, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of CHF100k in 2023. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 71% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

ENXTPA:MLBMD Earnings Per Share Growth November 25th 2022

Underlying developments driving beaconsmind’s growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 19% 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.

NextStep:

There are too many aspects of beaconsmind to cover in one brief article, but the key fundamentals for the company can all be found in one place – beaconsmind’s company page on Simply Wall St. We’ve also put together a list of pertinent aspects you should further research:

  1. Valuation: What is beaconsmind 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 beaconsmind is currently mispriced by the market.
  2. management team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on beaconsmind’s 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.

Valuation is complex, but we’re helping make it simple.

Find out whether beaconsmind is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button