Metacon AB (publ) (STO:META): Is Breakeven Near?

We feel now is a pretty good time to analyse Metacon AB (publ)'s (STO:META) business as it appears the company may be on the cusp of a considerable accomplishment. Metacon AB (publ) develops, manufactures, and sells energy systems to produce fossil-free green hydrogen in Sweden and Greece. The kr765m market-cap company posted a loss in its most recent financial year of kr138m and a latest trailing-twelve-month loss of kr116m shrinking the gap between loss and breakeven. The most pressing concern for investors is Metacon's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering Metacon, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of kr2.8m in 2027. Therefore, the company is expected to breakeven roughly 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 77% 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 Metacon's growth isn’t the focus of this broad overview, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Metacon

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 23% 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 too many aspects of Metacon to cover in one brief article, but the key fundamentals for the company can all be found in one place – Metacon's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is Metacon 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 Metacon 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 Metacon’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.