We Might See A Profit From AAC Clyde Space AB (publ) (STO:AAC) Soon

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) provides small satellite technologies and services in Sweden, the United Kingdom, rest of Europe, the United States, Asia, and internationally. The kr485m market-cap company’s loss lessened since it announced a kr5.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr1.5m, as it approaches breakeven. As path to profitability is the topic on AAC Clyde Space's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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AAC Clyde Space is bordering on breakeven, according to some Swedish Aerospace & Defense analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr12m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 151% 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.

Given this is a high-level overview, we won’t go into details of AAC Clyde Space's upcoming projects, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for AAC Clyde Space

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 6.2% 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:

This article is not intended to be a comprehensive analysis on AAC Clyde Space, so if you are interested in understanding the company at a deeper level, take a look at AAC Clyde Space's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

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.