Loss-Making LINK Mobility Group Holding ASA (OB:LINK) Set To Breakeven

LINK Mobility Group Holding ASA (OB:LINK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Link Mobility Group Holding ASA provides mobile communication services in Europe. The company’s loss has recently broadened since it announced a kr233m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr383m, moving it further away from breakeven. As path to profitability is the topic on LINK Mobility Group Holding's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for LINK Mobility Group Holding

LINK Mobility Group Holding is bordering on breakeven, according to the 2 Norwegian Software analysts. They expect the company to post a final loss in 2020, before turning a profit of kr133m in 2021. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 105% year-on-year, on average, which is rather optimistic! 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 LINK Mobility Group Holding given that this is a high-level summary, however, 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.

Before we wrap up, there’s one issue worth mentioning. LINK Mobility Group Holding currently has a debt-to-equity ratio of 162%. 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 around investing in the loss-making company.

Next Steps:

There are too many aspects of LINK Mobility Group Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – LINK Mobility Group Holding's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is LINK Mobility Group Holding 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 LINK Mobility Group Holding 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 LINK Mobility Group 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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