Ferroamp AB (publ) (STO:FERRO) Is About To Turn The Corner

We feel now is a pretty good time to analyse Ferroamp AB (publ)'s (STO:FERRO) business as it appears the company may be on the cusp of a considerable accomplishment. Ferroamp AB (publ) provides energy and power optimization solutions for homeowners, tenant owner associations, and property owners in Sweden. The kr208m market-cap company announced a latest loss of kr244m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Ferroamp'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.

See our latest analysis for Ferroamp

Expectations from some of the Swedish Electrical analysts is that Ferroamp is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr490k in 2025. So, the company is predicted to breakeven approximately a year 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 150% 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.

Underlying developments driving Ferroamp's growth isn’t the focus of this broad overview, but, bear in mind 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 prudently, with debt making up 30% 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 key fundamentals of Ferroamp 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 Ferroamp, take a look at Ferroamp's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has Ferroamp'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 Ferroamp'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.