Loss-Making Doosan Robotics Inc. (KRX:454910) Expected To Breakeven In The Medium-Term

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. The ₩3.9t market-cap company’s loss lessened since it announced a ₩16b loss in the full financial year, compared to the latest trailing-twelve-month loss of ₩13b, as it approaches breakeven. 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.

View our latest analysis for Doosan Robotics

Doosan Robotics is bordering on breakeven, according to the 2 South Korean Machinery analysts. They expect the company to post a final loss in 2024, before turning a profit of ₩36b in 2025. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 118% is expected, 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, however, bear in mind that by and large 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 Doosan Robotics has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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 relevant aspects 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.