When Will Proximar Seafood AS (OB:PROXI) Breakeven?

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. The kr559m market-cap company posted a loss in its most recent financial year of kr93m and a latest trailing-twelve-month loss of kr129m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Proximar Seafood's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Proximar Seafood

Consensus from 2 of the Norwegian Food analysts is that Proximar Seafood is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr84m in 2025. So, the company is predicted 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 60%, 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 Proximar Seafood'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 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:

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

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.