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Rubean AG (FRA:R1B) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rubean AG, a fintech company, provides software point-of-sale solutions to banks, acquirers, and merchants. On 31 December 2022, the €22m market-cap company posted a loss of €1.4m for its most recent financial year. The most pressing concern for investors is Rubean's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Rubean
Rubean is bordering on breakeven, according to some German Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €400k in 2025. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 50%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Rubean's upcoming projects, however, bear in mind 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 1.5% 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 key fundamentals of Rubean which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Rubean, take a look at Rubean's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:
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Valuation: What is Rubean 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 Rubean 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 Rubean’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.