Thin Film Electronics ASA (OB:THIN) Is Expected To Breakeven

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Thin Film Electronics ASA's (OB:THIN): Thin Film Electronics ASA provides near field communication (NFC) mobile marketing and smart-packaging solutions by printed electronics technology in Norway. The øre767m market-cap company’s loss lessens since it announced a -US$59.6m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$59.5m, as it approaches breakeven. The most pressing concern for investors is THIN’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for THIN’s growth and when analysts expect the company to become profitable.

View our latest analysis for Thin Film Electronics

THIN is bordering on breakeven, according to the 2 Tech analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$8.6m in 2020. Therefore, THIN is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which THIN must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, THIN may become profitable much later than analysts predict.

I’m not going to go through company-specific developments for THIN given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one aspect worth mentioning. THIN has managed its capital prudently, with debt making up 13% of equity. This means that THIN 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 THIN, so if you are interested in understanding the company at a deeper level, take a look at THIN’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:

1. Valuation: What is THIN 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 THIN 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 Thin Film Electronics’s board and the CEO’s back ground.
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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.