When Will FIFAX Abp (HEL:FIFAX) Become Profitable?

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 €20m 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. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for FIFAX Abp

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 2024, before turning a profit of €600k in 2025. The company is therefore projected to breakeven just over a year from today. 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 signals high confidence from analysts. 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, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that 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:

There are key fundamentals of FIFAX Abp 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 FIFAX Abp, take a look at FIFAX Abp's company page on Simply Wall St. We've also compiled a list of key 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.