In This Article:
Prodways Group SA’s (EPA:PWG): Prodways Group S.A. manufactures and sells industrial and professional 3D printers in Europe. The €205.7m market-cap company’s loss lessens since it announced a -€7.6m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -€7.5m, as it approaches breakeven. As path to profitability is the topic on PWG’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for PWG, its year of breakeven and its implied growth rate.
Check out our latest analysis for Prodways Group
Expectation from Machinery analysts is PWG is on the verge of breakeven. They anticipate the company to incur a final loss in 2018, before generating positive profits of €2.0m in 2019. So, PWG is predicted to breakeven approximately a couple of months from now! What rate will PWG have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 110%, which is extremely buoyant. If this rate turns out to be too aggressive, PWG may become profitable much later than analysts predict.
Underlying developments driving PWG’s growth isn’t the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. PWG has managed its capital judiciously, with debt making up 11.5% of equity. This means that PWG 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 PWG to cover in one brief article, but the key fundamentals for the company can all be found in one place – PWG’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further research:
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Valuation: What is PWG 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 PWG 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 Prodways Group’s board and the CEO’s back ground.
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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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.