SensoDetect Aktiebolag (publ) (NGM:SDET): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at SensoDetect Aktiebolag (publ)'s (NGM:SDET) future prospects. SensoDetect Aktiebolag (publ), a MedTech artificial intelligence company, engages in the development of solutions for people suffering from mental illness. With the latest financial year loss of kr8.5m and a trailing-twelve-month loss of kr8.9m, the kr43m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is SensoDetect Aktiebolag'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.

Check out our latest analysis for SensoDetect Aktiebolag

SensoDetect Aktiebolag is bordering on breakeven, according to some Swedish Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of kr2.0m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. 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 109%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of SensoDetect Aktiebolag's upcoming projects, but, take into account that generally 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 8.1% 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 SensoDetect Aktiebolag 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 SensoDetect Aktiebolag, take a look at SensoDetect Aktiebolag'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 SensoDetect Aktiebolag 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 SensoDetect Aktiebolag 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 SensoDetect Aktiebolag’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.