We feel now is a pretty good time to analyse CMES Robotics Inc.'s (KOSDAQ:475400) business as it appears the company may be on the cusp of a considerable accomplishment. CMES Robotics Inc. provides intelligent robot automation solutions for mass production industries. The ₩188b market-cap company posted a loss in its most recent financial year of ₩17b and a latest trailing-twelve-month loss of ₩18b leading to an even wider gap between loss and breakeven. As path to profitability is the topic on CMES Robotics' 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.
Expectations from some of the South Korean Machinery analysts is that CMES Robotics is on the verge of breakeven. They anticipate the company to incur a final loss in 2027, before generating positive profits of ₩5.5b in 2028. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 98% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving CMES Robotics' growth isn’t the focus of this broad overview, though, 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.
View our latest analysis for CMES Robotics
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 5.5% 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:
This article is not intended to be a comprehensive analysis on CMES Robotics, so if you are interested in understanding the company at a deeper level, take a look at CMES Robotics' company page on Simply Wall St. We've also put together a list of essential factors you should look at:
- Historical Track Record: What has CMES Robotics' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CMES Robotics' 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.