Breakeven On The Horizon For FIFAX Abp (HEL:FIFAX)

We feel now is a pretty good time to analyse FIFAX Abp's (HEL:FIFAX) business as it appears the company may be on the cusp of a considerable accomplishment. FIFAX Abp engages in the land-based fish farming business in Finland and Sweden. With the latest financial year loss of €7.2m and a trailing-twelve-month loss of €7.0m, the €19m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on FIFAX Abp's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for FIFAX Abp

According to some industry analysts covering FIFAX Abp, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €600k in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% 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 FIFAX Abp's upcoming projects, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 30% 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:

This article is not intended to be a comprehensive analysis on FIFAX Abp, so if you are interested in understanding the company at a deeper level, take a look at FIFAX Abp's company page on Simply Wall St. We've also put together a list of relevant factors 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.