Heeros Oyj’s (HEL:HEEROS): Heeros Oyj provides cloud-based financial management solutions. On 31 December 2018, the €9.1m market-cap posted a loss of -€507.0k for its most recent financial year. Many investors are wondering the rate at which HEEROS will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for HEEROS.
Expectation from Software analysts is HEEROS is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of €200k in 2020. So, HEEROS is predicted to breakeven approximately a couple of months from now! How fast will HEEROS have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 76% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for HEEROS given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I would like to bring into light with HEEROS is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in HEEROS’s case is 84%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
There are too many aspects of HEEROS to cover in one brief article, but the key fundamentals for the company can all be found in one place – HEEROS’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further research:
- Valuation: What is HEEROS 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 HEEROS 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 Heeros Oyj’s board and the CEO’s back ground.
- 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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