SaveLend Group AB (publ) (STO:YIELD): Is Breakeven Near?

We feel now is a pretty good time to analyse SaveLend Group AB (publ)'s (STO:YIELD) business as it appears the company may be on the cusp of a considerable accomplishment. SaveLend Group AB (publ), through its subsidiaries, operates as a fintech company in the fixed income investment segment in Sweden, Poland, and Finland. With the latest financial year loss of kr12m and a trailing-twelve-month loss of kr16m, the kr149m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which SaveLend Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for SaveLend Group

According to some industry analysts covering SaveLend Group, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of kr45m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 103%, 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 SaveLend Group's growth isn’t the focus of this broad overview, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with SaveLend Group is its debt-to-equity ratio of 170%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of SaveLend Group 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 SaveLend Group, take a look at SaveLend Group's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Historical Track Record: What has SaveLend Group'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 SaveLend Group'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.

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