When Will Qliro AB (publ) (STO:QLIRO) Breakeven?

Qliro AB (publ) (STO:QLIRO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Qliro AB (publ) operates as a fintech company. The kr3.1b market-cap company announced a latest loss of kr67m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is Qliro'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.

See our latest analysis for Qliro

According to some industry analysts covering Qliro, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of kr12m in 2022. Therefore, the company is expected 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 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 100% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Qliro's growth isn’t the focus of this broad overview, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Qliro currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Qliro's case is 54%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Qliro 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 Qliro, take a look at Qliro's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

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