Analysts Expect Breakeven For Ecoclime Group AB (publ) (STO:ECC B) Before Long

Ecoclime Group AB (publ) (STO:ECC B) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Ecoclime Group AB (publ), together with its subsidiaries, provides solutions for extraction, recycling, storage, and distribution of thermal energy in properties in Sweden. On 31 December 2023, the kr114m market-cap company posted a loss of kr25m for its most recent financial year. Many investors are wondering about the rate at which Ecoclime Group 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 Ecoclime Group

According to the 2 industry analysts covering Ecoclime Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr18m in 2025. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Ecoclime Group's growth isn’t the focus of this broad overview, but, bear in mind that by and large 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 Ecoclime Group has no debt on its balance sheet, which is rare for a loss-making 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 too many aspects of Ecoclime Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Ecoclime Group's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is Ecoclime Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Ecoclime Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ecoclime Group’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.