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We feel now is a pretty good time to analyse mVISE AG's (ETR:C1V) business as it appears the company may be on the cusp of a considerable accomplishment. mVISE AG provides IT consultancy services in Germany. The €13m market-cap company announced a latest loss of €4.0m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on mVISE's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 2 industry analysts covering mVISE, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of €400k in 2026. Therefore, the company is expected 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 113% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving mVISE'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.
View our latest analysis for mVISE
One thing we would like to bring into light with mVISE is its debt-to-equity ratio of 107%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of mVISE to cover in one brief article, but the key fundamentals for the company can all be found in one place – mVISE's company page on Simply Wall St. We've also put together a list of essential factors you should look at:
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Valuation: What is mVISE 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 mVISE 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 mVISE’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.
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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.