FIFAX Abp (HEL:FIFAX): Is Breakeven Near?

FIFAX Abp (HEL:FIFAX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. FIFAX Abp engages in the land-based fish farming business in Finland and Sweden. On 31 December 2023, the €15m market-cap company posted a loss of €7.2m for its most recent financial year. The most pressing concern for investors is FIFAX Abp's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for FIFAX Abp

Expectations from some of the Finnish Food analysts is that FIFAX Abp is on the verge of breakeven. 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 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 75% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for FIFAX Abp given that this is a high-level summary, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 22% 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 FIFAX Abp 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 FIFAX Abp, take a look at FIFAX Abp's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is FIFAX Abp 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 FIFAX Abp 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 FIFAX Abp’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.