Loss-Making OptiFreeze AB (publ) (NGM:OPTI) Set To Breakeven

With the business potentially at an important milestone, we thought we'd take a closer look at OptiFreeze AB (publ)'s (NGM:OPTI) future prospects. OptiFreeze AB (publ) owns a patented technology for enhancing the taste, shape, and texture of vegetables, fruits, and berries in the freezing and thawing process. The kr731m market-cap company posted a loss in its most recent financial year of kr8.3m and a latest trailing-twelve-month loss of kr9.9m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which OptiFreeze will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for OptiFreeze

OptiFreeze is bordering on breakeven, according to some Swedish Machinery analysts. They expect the company to post a final loss in 2020, before turning a profit of kr30m in 2021. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 128% 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 OptiFreeze 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 aspect worth mentioning. OptiFreeze currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of OptiFreeze to cover in one brief article, but the key fundamentals for the company can all be found in one place – OptiFreeze's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has OptiFreeze'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 OptiFreeze'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.

When trading OptiFreeze or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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