Analysts Expect Digital Workforce Services Oyj (HEL:DWF) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Digital Workforce Services Oyj's (HEL:DWF) future prospects. Digital Workforce Services Oyj. provides robotic process automation services (RPA) and intelligent automation (IA) solutions worldwide. The €43m market-cap company posted a loss in its most recent financial year of €697k and a latest trailing-twelve-month loss of €562k shrinking the gap between loss and breakeven. As path to profitability is the topic on Digital Workforce Services Oyj'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.

See our latest analysis for Digital Workforce Services Oyj

Consensus from 2 of the Finnish IT analysts is that Digital Workforce Services Oyj is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of €660k in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 65%, 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 Digital Workforce Services Oyj given that this is a high-level summary, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 5.1% 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 Digital Workforce Services 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 Digital Workforce Services Oyj, take a look at Digital Workforce Services Oyj'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 Digital Workforce Services 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 Digital Workforce Services 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 Digital Workforce Services 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.