Stock Analysis

Nanoform Finland Oyj (HEL:NANOFH): Are Analysts Optimistic?

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Nanoform Finland Oyj (HEL:NANOFH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nanoform Finland Oyj provides nanotechnology and drug particle engineering services for the pharmaceutical and biotech industry in Europe and the United States. The €183m market-cap company announced a latest loss of €22m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Nanoform Finland Oyj's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Nanoform Finland Oyj

According to the 2 industry analysts covering Nanoform Finland Oyj, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €900k in 2025. So, the company is predicted to breakeven approximately 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 64%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

HLSE:NANOFH Earnings Per Share Growth May 24th 2023

We're not going to go through company-specific developments for Nanoform Finland Oyj given that this is a high-level summary, but, take into account that by and large a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that Nanoform Finland Oyj has no debt on its balance sheet, which is quite unusual for a cash-burning life science company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Nanoform Finland Oyj, so if you are interested in understanding the company at a deeper level, take a look at Nanoform Finland Oyj's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

  1. Historical Track Record: What has Nanoform Finland 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 Nanoform Finland 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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