We feel now is a pretty good time to analyse beaconsmind AG's (FRA:81D) business as it appears the company may be on the cusp of a considerable accomplishment. beaconsmind AG offers technology and software solutions for location-based marketing in the areas of retail in Switzerland and internationally. With the latest financial year loss of CHF4.3m and a trailing-twelve-month loss of CHF4.0m, the €31m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on beaconsmind's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 2 of the German Software analysts is that beaconsmind is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CHF2.0m in 2025. So, the company is predicted to breakeven approximately 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 117% 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.
We're not going to go through company-specific developments for beaconsmind given that this is a high-level summary, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for beaconsmind
One thing we would like to bring into light with beaconsmind is its debt-to-equity ratio of 121%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on beaconsmind, so if you are interested in understanding the company at a deeper level, take a look at beaconsmind's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
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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.