FIFAX Abp (HEL:FIFAX): When Will It Breakeven?

FIFAX Abp (HEL:FIFAX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. FIFAX Abp engages in the land-based fish farming business in Finland and Sweden. On 31 December 2024, the €5.9m market-cap company posted a loss of €6.9m for its most recent financial year. The most pressing concern for investors is FIFAX Abp's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Expectations from some of the Finnish Food analysts is that FIFAX Abp is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of €1.1m in 2027. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 67%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for FIFAX Abp given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for FIFAX Abp

Before we wrap up, there’s one issue worth mentioning. FIFAX Abp currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in FIFAX Abp's case is 58%. Note that a higher debt obligation increases 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 compiled a list of essential factors you should further examine:

1. Historical Track Record: What has FIFAX Abp'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 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.