Since the company may have reached an important milestone, we wanted to take a closer look Manz AG (ETR:M5Z) Future prospects. Manz AG, together with its subsidiaries, is a high-tech engineering company that offers production facilities in Germany, the rest of Europe, the USA, Taiwan, China, the rest of Asia and internationally. The company, with a market capitalization of €45 million, posted a loss of €2.4 million in the last fiscal year and a loss of €20 million in the last twelve months, resulting in an even larger gap between loss and breakeven. Since the path to profitability is the topic that concerns Manz investors, we decided to assess the market sentiment. In this article, we will discuss the expectations for the company’s growth and when analysts expect profitability.
Check out our latest analysis for Manz
According to the three analysts at German Semiconductor, Manz is close to breaking even. They expect the company to report a final loss in 2024 before making a profit of €1.3 million in 2025. So, the company is forecast to break even in just over a year. To meet this break-even date, we calculated the rate at which the company needs to grow compared to the previous year. It turns out that a compound annual growth rate of 105% is expected, which is extremely dynamic. If this rate turns out to be too aggressive, the company could become profitable much later than the analysts predict.
The underlying developments driving Manz’s growth are not the focus of this comprehensive review, but keep in mind that a high growth rate is generally not unusual, especially when a company is in an investment phase.
Before we conclude, there is one more point worth mentioning. Manz currently has a relatively high level of debt. Normally, debt should not exceed 40% of equity, which is 72% for Manz. A higher level of debt requires stricter capital management, which increases the risk of investing in the loss-making company.
Next Steps:
There are too many aspects of Manz to cover in a short article, but the most important fundamentals of the company can be found all in one place – on Manz’s company page on Simply Wall St. We’ve also compiled a list of relevant factors that you should examine in more detail:
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Evaluation: What is Manz worth today? Is the future growth potential already included in the price? The infographic on intrinsic value in our free research report helps to visualize whether Manz is currently being mispriced by the market.
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Management Team: An experienced management team at the top strengthens our confidence in the company – take a look at who sits on Manz’s board of directors and what the CEO’s background is.
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Other high-performing stocks: Are there other stocks with better prospects and proven track records? Discover our free list of these great stocks here.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
