Doosan Robotics Inc. (KRX:454910) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Doosan Robotics Inc.'s (KRX:454910) business as it appears the company may be on the cusp of a considerable accomplishment. Doosan Robotics Inc. develops collaborative robots in South Korea. With the latest financial year loss of ₩37b and a trailing-twelve-month loss of ₩43b, the ₩3.4t market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Doosan Robotics' 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.

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Consensus from 3 of the South Korean Machinery analysts is that Doosan Robotics is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of ₩20b in 2026. The company is therefore projected to breakeven just over a year 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 98%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Doosan Robotics' upcoming projects, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Doosan Robotics

Before we wrap up, there’s one aspect worth mentioning. Doosan Robotics currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth 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:

There are too many aspects of Doosan Robotics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Doosan Robotics' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Valuation: What is Doosan Robotics 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 Doosan Robotics 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 Doosan Robotics’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.