SSH Communications Security Oyj (HEL:SSH1V) Is Expected To Breakeven In The Near Future

February 03, 2021

With the business potentially at an important milestone, we thought we'd take a closer look at SSH Communications Security Oyj's (HEL:SSH1V) future prospects. SSH Communications Security Oyj provides enterprise cybersecurity solutions for financial institutions and other organizations to access, secure, and control data, applications, and services worldwide. With the latest financial year loss of €2.2m and a trailing-twelve-month loss of €2.4m, the €93m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on SSH Communications Security Oyj's investors mind, we've decided to gauge market sentiment. 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 SSH Communications Security Oyj

Expectations from some of the Finnish Software analysts is that SSH Communications Security Oyj is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of €1.2m in 2022. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth — HLSE:SSH1V Earnings Per Share Growth February 4th 2021

We're not going to go through company-specific developments for SSH Communications Security Oyj given that this is a high-level summary, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 6.1% 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 too many aspects of SSH Communications Security Oyj to cover in one brief article, but the key fundamentals for the company can all be found in one place – SSH Communications Security Oyj's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

Valuation: What is SSH Communications Security 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 SSH Communications Security Oyj is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SSH Communications Security Oyj’s board and the CEO’s background.
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. 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.
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