Market Sentiment Around Loss-Making Singulus Technologies AG (ETR:SNG)

Singulus Technologies AG (ETR:SNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Singulus Technologies AG develops and assembles machines and systems for thin-film coating and surface treatment processes worldwide. The company’s loss has recently broadened since it announced a €5.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of €7.3m, moving it further away from breakeven. The most pressing concern for investors is Singulus Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 3 of the German Machinery analysts is that Singulus Technologies is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €3.3m in 2026. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 120% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Singulus Technologies given that this is a high-level summary, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Singulus Technologies

One thing we would like to bring into light with Singulus Technologies is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Singulus Technologies 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 Singulus Technologies, take a look at Singulus Technologies' company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Historical Track Record: What has Singulus Technologies' 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 Singulus Technologies' 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.