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Breakeven On The Horizon For SBF AG (FRA:CY1K)

Simply Wall St · 1d ago

We feel now is a pretty good time to analyse SBF AG's (FRA:CY1K) business as it appears the company may be on the cusp of a considerable accomplishment. SBF AG, through its subsidiary, SBF Spezialleuchten GmbH, engages in the development, manufacture, and distribution of ceiling and lighting systems for indoor and outdoor rail vehicles. The €52m market-cap company’s loss lessened since it announced a €2.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of €1.6m, as it approaches breakeven. As path to profitability is the topic on SBF's investors mind, we've decided to gauge market sentiment. 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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Consensus from 2 of the German Electrical analysts is that SBF is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €1.8m in 2026. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 110%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
DB:CY1K Earnings Per Share Growth December 16th 2025

Underlying developments driving SBF's growth isn’t the focus of this broad overview, however, take into account that by and large 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 SBF

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 26% 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 SBF 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 SBF, take a look at SBF's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

  1. Valuation: What is SBF 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 SBF 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 SBF’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.