Yahoo Finance The NAGA Group AG (ETR:N4G) On The Verge Of Breaking Even
The NAGA Group AG (ETR:N4G) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. The NAGA Group AG develops technologies for the financial sector and use of blockchain technology. The €33m market-cap company’s loss lessened since it announced a €37m loss in the full financial year, compared to the latest trailing-twelve-month loss of €20m, as it approaches breakeven. The most pressing concern for investors is NAGA Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for NAGA Group
NAGA Group is bordering on breakeven, according to the 3 German Software analysts. They expect the company to post a final loss in 2023, before turning a profit of €1.2m in 2024. So, the company is predicted to breakeven approximately 12 months 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 61% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving NAGA Group's growth isn’t the focus of this broad overview, but, 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.
Before we wrap up, there’s one aspect worth mentioning. NAGA Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of NAGA Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – NAGA Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Valuation: What is NAGA Group 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 NAGA Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NAGA Group’s board and the CEO’s background.
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.
