Openedges Technology, Inc. (KOSDAQ:394280) On The Verge Of Breaking Even

We feel now is a pretty good time to analyse Openedges Technology, Inc.'s (KOSDAQ:394280) business as it appears the company may be on the cusp of a considerable accomplishment. Openedges Technology, Inc. develops AI computing IP solutions and memory systems in South Korea. With the latest financial year loss of ₩15b and a trailing-twelve-month loss of ₩10.0b, the ₩350b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Openedges Technology's path to profitability – when will it breakeven? 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 Openedges Technology

According to the 2 industry analysts covering Openedges Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of ₩6.7b in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 125% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Openedges Technology's growth isn’t the focus of this broad overview, though, take into account that generally 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 The company has managed its capital judiciously, with debt making up 22% 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 Openedges Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Openedges Technology's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Openedges Technology 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 Openedges Technology 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 Openedges Technology’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.