With the business potentially at an important milestone, we thought we’d take a closer look at niiio finance group AG’s (ETR:NIIN) future prospects. niiio finance group AG provides cloud-based software-as-a-service solutions for banks and financial service providers. The company’s loss has recently broadened since it announced a €3.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of €3.4m, moving it further away from breakeven. The most pressing concern for investors is niiio finance 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 niiio finance group

niiio finance group is bordering on breakeven, according to some German IT analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €600k in 2025. Therefore, the company is expected to breakeven just over a year from today. 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 95%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving niiio finance group’s growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 38% 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 too many aspects of niiio finance group to cover in one brief article, but the key fundamentals for the company can all be found in one place – niiio finance group’s company page on Simply Wall St. We’ve also put together a list of relevant aspects you should further research:

1. Valuation: What is niiio finance 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 niiio finance 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 niiio finance 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.