PowerCell Sweden AB (publ) (STO:PCELL) Is About To Turn The Corner

We feel now is a pretty good time to analyse PowerCell Sweden AB (publ)'s (STO:PCELL) business as it appears the company may be on the cusp of a considerable accomplishment. PowerCell Sweden AB (publ) develops and produces fuel cells and fuel cell systems for automotive, marine, and stationary applications in Sweden and internationally. The kr1.7b market-cap company posted a loss in its most recent financial year of kr47m and a latest trailing-twelve-month loss of kr38m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which PowerCell Sweden will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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PowerCell Sweden is bordering on breakeven, according to the 4 Swedish Electrical analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr6.0m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 90% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for PowerCell Sweden given that this is a high-level summary, though, bear in mind 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 PowerCell Sweden

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.08% 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 key fundamentals of PowerCell Sweden which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at PowerCell Sweden, take a look at PowerCell Sweden's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Valuation: What is PowerCell Sweden 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 PowerCell Sweden 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 PowerCell Sweden’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.