When Will M Vest Water AS (OB:MVW) Breakeven?

We feel now is a pretty good time to analyse M Vest Water AS' (OB:MVW) business as it appears the company may be on the cusp of a considerable accomplishment. M Vest Water AS, an environmental technology company, provides water and wastewater treatment products and solutions in Norway and internationally. With the latest financial year loss of kr28m and a trailing-twelve-month loss of kr27m, the kr301m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is M Vest Water'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.

View our latest analysis for M Vest Water

M Vest Water is bordering on breakeven, according to some Norwegian Chemicals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr7.0m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving M Vest Water's growth isn’t the focus of this broad overview, but, bear in mind that typically 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 9.0% 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 too many aspects of M Vest Water to cover in one brief article, but the key fundamentals for the company can all be found in one place – M Vest Water's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com