Analysts Are Optimistic We'll See A Profit From Martela Oyj (HEL:MARAS)

Martela Oyj (HEL:MARAS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Martela Oyj operates in the office interior industry primarily in Finland, Sweden, Norway, and internationally. The €13m market-cap company’s loss lessened since it announced a €2.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of €2.2m, as it approaches breakeven. The most pressing concern for investors is Martela Oyj'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.

View our latest analysis for Martela Oyj

According to some industry analysts covering Martela Oyj, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of €900k in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 77% 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 Martela Oyj's growth isn’t the focus of this broad overview, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Martela Oyj is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Martela Oyj's case is 45%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Martela Oyj to cover in one brief article, but the key fundamentals for the company can all be found in one place – Martela Oyj's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is Martela Oyj 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 Martela Oyj 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 Martela Oyj’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.

When trading Martela Oyj or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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