learnd SE (ETR:LRND) On The Verge Of Breaking Even

learnd SE (ETR:LRND) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. learnd SE, through its subsidiaries, provides building management and energy systems in the United Kingdom. The €69m market-cap company posted a loss in its most recent financial year of UK£49m and a latest trailing-twelve-month loss of UK£787k shrinking the gap between loss and breakeven. The most pressing concern for investors is learnd's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

learnd is bordering on breakeven, according to some German Commercial Services analysts. They expect the company to post a final loss in 2024, before turning a profit of UK£200k in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 16%, which seems relatively fair. However, if this rate turns out to be too buoyant, the company may become profitable later than analysts predict.

Underlying developments driving learnd's growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for learnd

One thing we would like to bring into light with learnd is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of learnd 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 learnd, take a look at learnd's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is learnd 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 learnd 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 learnd’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.