Xeros Technology Group plc (LON:XSG): Are Analysts Optimistic?

Xeros Technology Group plc (LON:XSG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Xeros Technology Group plc, together with its subsidiaries, develops and commercializes polymer-based technologies in Europe, North America, and internationally. The UK£6.9m market-cap company announced a latest loss of UK£4.3m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Xeros Technology 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.

See our latest analysis for Xeros Technology Group

Expectations from some of the British Machinery analysts is that Xeros Technology Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£1.3m in 2025. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 101% year-on-year, on average, 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.

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Given this is a high-level overview, we won’t go into details of Xeros Technology Group's upcoming projects, though, 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.

Before we wrap up, there’s one aspect worth mentioning. Xeros Technology 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 Xeros Technology Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Xeros Technology Group's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Xeros Technology 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 Xeros Technology Group 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 Xeros Technology Group’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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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.