Market Sentiment Around Loss-Making Heliospectra AB (publ) (STO:HELIO)

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 kr115m market-cap company’s loss lessened since it announced a kr36m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr29m, as it approaches 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 anticipate the company to incur a final loss in 2024, before generating positive profits of kr10m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 94% is expected, which is extremely buoyant. 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, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Heliospectra currently 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

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 important aspects you should look at:

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.