Bactiguard Holding AB (publ)'s (STO:BACTI B) Path To Profitability

We feel now is a pretty good time to analyse Bactiguard Holding AB (publ)'s (STO:BACTI B) business as it appears the company may be on the cusp of a considerable accomplishment. Bactiguard Holding AB (publ), a medTech company, provides infection prevention technology and solutions in orthopedics, cardiology, neurology, urology, and vascular access areas. The kr629m market-cap company posted a loss in its most recent financial year of kr30m and a latest trailing-twelve-month loss of kr21m shrinking the gap between loss and breakeven. As path to profitability is the topic on Bactiguard Holding's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Expectations from some of the Swedish Medical Equipment analysts is that Bactiguard Holding is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr7.0m in 2026. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 116% 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.

Given this is a high-level overview, we won’t go into details of Bactiguard Holding's upcoming projects, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Bactiguard Holding

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 40% 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 Bactiguard Holding 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 Bactiguard Holding, take a look at Bactiguard Holding's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is Bactiguard Holding 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 Bactiguard Holding 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 Bactiguard Holding’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.