Analysts Are Optimistic We'll See A Profit From Pyramid AG (ETR:M3B0)

Pyramid AG (ETR:M3B0) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Pyramid AG engages in the development and manufacture of information technology solutions for the retail, financial, and industrial markets in Germany. The €7.8m market-cap company’s loss lessened since it announced a €15m loss in the full financial year, compared to the latest trailing-twelve-month loss of €15m, as it approaches breakeven. The most pressing concern for investors is Pyramid'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.

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Pyramid is bordering on breakeven, according to the 2 German Tech analysts. They expect the company to post a final loss in 2025, before turning a profit of €200k in 2026. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 82% is expected, which signals high confidence from analysts. 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 Pyramid's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Pyramid

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 36% 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 Pyramid 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 Pyramid, take a look at Pyramid's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is Pyramid 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 Pyramid is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pyramid’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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