Breakeven On The Horizon For Optomed Oyj (HEL:OPTOMED)

With the business potentially at an important milestone, we thought we'd take a closer look at Optomed Oyj's (HEL:OPTOMED) future prospects. Optomed Oyj, together with its subsidiaries, manufactures and sells handheld fundus cameras in Finland and internationally. The €115m market-cap company’s loss lessened since it announced a €4.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of €4.4m, as it approaches breakeven. Many investors are wondering about the rate at which Optomed Oyj will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Optomed Oyj

Consensus from 3 of the Finnish Medical Equipment analysts is that Optomed Oyj is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €500k in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Optomed Oyj's growth isn’t the focus of this broad overview, but, keep in mind that generally 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 prudently, with debt making up 16% 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 Optomed Oyj 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 Optomed Oyj, take a look at Optomed Oyj's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Valuation: What is Optomed 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 Optomed 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 Optomed 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.