Acarix AB (publ) (STO:ACARIX): Is Breakeven Near?

Acarix AB (publ) (STO:ACARIX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Acarix AB (publ), a medical device company, develops solutions for rapid AI-based coronary artery disease (CAD) rule-out in Sweden and internationally. On 30 December 2023, the kr208m market-cap company posted a loss of kr78m for its most recent financial year. The most pressing concern for investors is Acarix'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 Acarix

Acarix is bordering on breakeven, according to some Swedish Medical Equipment analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr58m in 2025. The company is therefore projected to breakeven just over a year 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 127%, which is extremely buoyant. 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 Acarix's upcoming projects, however, bear in mind 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 aspect worth mentioning. Acarix currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Acarix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Acarix's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Valuation: What is Acarix 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 Acarix 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 Acarix’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.