Analysts Are Optimistic We'll See A Profit From TECO 2030 ASA (OB:TECO)

With the business potentially at an important milestone, we thought we'd take a closer look at TECO 2030 ASA's (OB:TECO) future prospects. TECO 2030 ASA, together with its subsidiaries, operates as an engineering and equipment development company for the maritime industry worldwide. With the latest financial year loss of kr27m and a trailing-twelve-month loss of kr43m, the kr741m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is TECO 2030's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for TECO 2030

TECO 2030 is bordering on breakeven, according to some Norwegian Machinery analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr35m in 2021. So, the company is predicted to breakeven approximately 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 155%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for TECO 2030 given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 2.4% 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:

This article is not intended to be a comprehensive analysis on TECO 2030, so if you are interested in understanding the company at a deeper level, take a look at TECO 2030's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has TECO 2030's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TECO 2030'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.
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