Analysts Expect Spinnova Oyj (HEL:SPINN) To Breakeven Soon

Spinnova Oyj (HEL:SPINN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Spinnova Oyj engages in the production and sale of natural fibre materials in Finland and internationally. The €90m market-cap company announced a latest loss of €20m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Spinnova Oyj will turn a profit, with the big question being “when will the company 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 Spinnova Oyj

According to the 2 industry analysts covering Spinnova Oyj, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €755k in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 31% 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.

Given this is a high-level overview, we won’t go into details of Spinnova Oyj's upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 6.7% 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 too many aspects of Spinnova Oyj to cover in one brief article, but the key fundamentals for the company can all be found in one place – Spinnova Oyj's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Historical Track Record: What has Spinnova Oyj's 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Spinnova 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.

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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.