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We feel now is a pretty good time to analyse Pyramid AG's (ETR:M3BK) business as it appears the company may be on the cusp of a considerable accomplishment. Pyramid AG develops and manufactures information technology solutions for the retail and hospitality market. The €25m market-cap company announced a latest loss of €5.0m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Pyramid will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Pyramid
Pyramid is bordering on breakeven, according to the 2 German Tech analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of €3.1m in 2024. So, the company is predicted to breakeven approximately a year 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 111% 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.
We're not going to go through company-specific developments for Pyramid given that this is a high-level summary, though, keep in mind that generally 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 prudently, with debt making up 25% 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:
There are too many aspects of Pyramid to cover in one brief article, but the key fundamentals for the company can all be found in one place – Pyramid's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
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Valuation: What is Pyramid 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 Pyramid is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pyramid’s board and the CEO’s background.
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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.