Breakeven On The Horizon For AAC Clyde Space AB (publ) (STO:AAC)

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, the Netherlands, South Africa, the United States, Japan, and South Korea. With the latest financial year loss of kr47m and a trailing-twelve-month loss of kr40m, the kr173m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which AAC Clyde Space 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.

Check out our latest analysis for AAC Clyde Space

According to some industry analysts covering AAC Clyde Space, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr22m in 2024. The company is therefore projected 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 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 157% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of AAC Clyde Space's upcoming projects, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that AAC Clyde Space 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of AAC Clyde Space which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at AAC Clyde Space, take a look at AAC Clyde Space's company page on Simply Wall St. We've also compiled a list of pertinent aspects 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. 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.