Loss-Making Aino Health AB (publ) (STO:AINO) Set To Breakeven

Aino Health AB (publ) (STO:AINO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aino Health AB (publ) provides corporate health management solutions for private and public organizations in Finland. The kr60m market-cap company announced a latest loss of kr13m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Aino Health's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Aino Health

Expectations from some of the Swedish Healthcare Services analysts is that Aino Health is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr2.1m in 2021. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 100% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Aino Health's growth isn’t the focus of this broad overview, however, take into account that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 9.3% 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 too many aspects of Aino Health to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aino Health's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is Aino Health 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 Aino Health 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 Aino Health’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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