When Can We Expect A Profit From Heliospectra AB (publ) (STO:HELIO)?

We feel now is a pretty good time to analyse Heliospectra AB (publ)'s (STO:HELIO) business as it appears the company may be on the cusp of a considerable accomplishment. Heliospectra AB (publ) provides light control systems and related services for greenhouse and controlled plant growth environments worldwide. The kr32m market-cap company’s loss lessened since it announced a kr25m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr19m, as it approaches breakeven. The most pressing concern for investors is Heliospectra's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Heliospectra

According to some industry analysts covering Heliospectra, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of kr12m in 2026. So, the company is predicted 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 101% year-on-year, on average, which is rather optimistic! 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 Heliospectra's upcoming projects, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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:

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

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.