Minesto AB (publ) (STO:MINEST) About To Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Minesto AB (publ)'s (STO:MINEST) future prospects. Minesto AB (publ), together with its subsidiaries, operates as a marine energy developer in Sweden, Wales, the Faroe Islands, Northern Ireland, and Taiwan. The company’s loss has recently broadened since it announced a kr27m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr43m, moving it further away from breakeven. As path to profitability is the topic on Minesto'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 Minesto

Expectations from some of the Swedish Electrical analysts is that Minesto is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr55m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 199% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Minesto's growth isn’t the focus of this broad overview, though, take into account that typically 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. The company has managed its capital prudently, with debt making up 0.09% 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 Minesto to cover in one brief article, but the key fundamentals for the company can all be found in one place – Minesto's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

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