AAC Clyde Space AB (publ) (STO:AAC): Are Analysts Optimistic?

AAC Clyde Space AB (publ) (STO:AAC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AAC Clyde Space AB (publ) primarily provides solutions and services to the small satellite market in Sweden, the United Kingdom, and the United States. On 31 December 2020, the kr366m market-cap company posted a loss of kr38m for its most recent financial year. As path to profitability is the topic on AAC Clyde Space's investors mind, we've decided to gauge market sentiment. 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 AAC Clyde Space

AAC Clyde Space is bordering on breakeven, according to the 2 Swedish Aerospace & Defense analysts. They expect the company to post a final loss in 2021, before turning a profit of kr5.6m in 2022. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 123% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for AAC Clyde Space given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up -0.5% 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:

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

1. Historical Track Record: What has AAC Clyde Space'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 AAC Clyde Space'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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