Meyer Burger Technology AG’s (VTX:MBTN) Shift From Loss To Profit


We feel now is a pretty good time to analyse Meyer Burger Technology AG’s (VTX:MBTN) business as it appears the company may be on the cusp of a considerable accomplishment. Meyer Burger Technology AG, a technology company, provides systems and production equipment to the photovoltaic industries. With the latest financial year loss of CHF64m and a trailing-twelve-month loss of CHF64m, the CHF1.3b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Meyer Burger Technology’s path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Meyer Burger Technology

Meyer Burger Technology is bordering on breakeven, according to the 7 Swiss Semiconductor analysts. They expect the company to post a final loss in 2022, before turning a profit of CHF49m in 2023. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% 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.

earnings-per-share-growth
SWX:MBTN Earnings Per Share Growth September 7th 2021

Underlying developments driving Meyer Burger Technology’s growth isn’t the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.02% 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:

This article is not intended to be a comprehensive analysis on Meyer Burger Technology, so if you are interested in understanding the company at a deeper level, take a look at Meyer Burger Technology’s company page on Simply Wall St. We’ve also put together a list of relevant aspects you should further research:

  1. Historical Track Record: What has Meyer Burger Technology’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Meyer Burger Technology’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.

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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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.



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