Loss-Making AAC Clyde Space AB (publ) (STO:AAC) Expected To Breakeven In The Medium-Term

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. The kr419m market-cap company’s loss lessened since it announced a kr41m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr33m, as it approaches breakeven. The most pressing concern for investors is AAC Clyde Space's path to profitability – when will it 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 the 2 industry analysts covering AAC Clyde Space, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of kr3.9m 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 87% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving AAC Clyde Space's growth isn’t the focus of this broad overview, but, 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up -0.6% 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 compiled 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.

If you decide to trade AAC Clyde Space, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all 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.