Salmon Evolution Holding AS (OB:SALME) Is Expected To Breakeven In The Near Future

Salmon Evolution Holding AS (OB:SALME) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Salmon Evolution Holding AS operates as a land-based salmon farming company in Norway. The kr1.5b market-cap company posted a loss in its most recent financial year of kr11m and a latest trailing-twelve-month loss of kr19m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Salmon Evolution Holding'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.

Check out our latest analysis for Salmon Evolution Holding

Salmon Evolution Holding is bordering on breakeven, according to the 2 Norwegian Food analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr69m in 2023. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.2% 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 key fundamentals of Salmon Evolution Holding 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 Salmon Evolution Holding, take a look at Salmon Evolution Holding's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Historical Track Record: What has Salmon Evolution Holding'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 Salmon Evolution Holding'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. 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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