Heliospectra AB (publ) (STO:HELIO) Is Expected To Breakeven In The Near Future

Heliospectra AB (publ) (STO:HELIO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Heliospectra AB (publ) provides light control systems and related services for greenhouse and controlled plant growth environments worldwide. The kr65m market-cap company posted a loss in its most recent financial year of kr25m and a latest trailing-twelve-month loss of kr25m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Heliospectra'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.

Check out our latest analysis for Heliospectra

Expectations from some of the Swedish Electrical analysts is that Heliospectra is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr1.4m in 2025. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 106%, 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 Heliospectra's growth isn’t the focus of this broad overview, though, take into account 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 Heliospectra has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 Heliospectra to cover in one brief article, but the key fundamentals for the company can all be found in one place – Heliospectra's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

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