M Vest Water AS' (OB:MVW) Shift From Loss To Profit

M Vest Water AS (OB:MVW) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. M Vest Water AS, an environmental technology company, provides water and wastewater treatment products and solutions in Norway and internationally. On 31 December 2024, the kr312m market-cap company posted a loss of kr24m for its most recent financial year. Many investors are wondering about the rate at which M Vest Water will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for M Vest Water

M Vest Water is bordering on breakeven, according to some Norwegian Chemicals analysts. They expect the company to post a final loss in 2025, before turning a profit of kr2.0m in 2026. The company is therefore projected to breakeven just over a year from now. 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 62% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of M Vest Water's upcoming projects, however, bear in mind that generally 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 judiciously, with debt making up 2.5% 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 M Vest Water, so if you are interested in understanding the company at a deeper level, take a look at M Vest Water's company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. Valuation: What is M Vest Water 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 M Vest Water 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 M Vest Water’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.