When Can We Expect A Profit From Proximar Seafood AS (OB:PROXI)?

Proximar Seafood AS (OB:PROXI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Proximar Seafood AS, a seafood company, engages in the land-based fish farming in Japan. With the latest financial year loss of kr139m and a trailing-twelve-month loss of kr231m, the kr133m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Proximar Seafood's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 2 industry analysts covering Proximar Seafood, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of kr25m in 2026. Therefore, the company is expected to breakeven just over a year from today. 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 59%, 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 Proximar Seafood given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Proximar Seafood

One thing we would like to bring into light with Proximar Seafood is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Proximar Seafood which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Proximar Seafood, take a look at Proximar Seafood's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Historical Track Record: What has Proximar Seafood'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 Proximar Seafood'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.