Analysts Expect Breakeven For Nordic Aqua Partners A/S (OB:NOAP) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Nordic Aqua Partners A/S' (OB:NOAP) future prospects. Nordic Aqua Partners A/S, together with its subsidiary, primarily engages in the land-based Atlantic salmon farming in the People’s Republic of China. The kr2.5b market-cap company posted a loss in its most recent financial year of €8.2m and a latest trailing-twelve-month loss of €6.8m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Nordic Aqua Partners will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Nordic Aqua Partners

Nordic Aqua Partners is bordering on breakeven, according to the 2 Norwegian Food analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €4.8m in 2025. So, the company is predicted 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 57%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Nordic Aqua Partners' growth isn’t the focus of this broad overview, but, 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 The company has managed its capital judiciously, with debt making up 20% 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 Nordic Aqua Partners, so if you are interested in understanding the company at a deeper level, take a look at Nordic Aqua Partners' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Nordic Aqua Partners 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 Nordic Aqua Partners 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 Nordic Aqua Partners’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.