Nanexa AB (publ) (STO:NANEXA) About To Shift From Loss To Profit

Nanexa AB (publ) (STO:NANEXA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nanexa AB (publ) operates as a nanotechnology drug delivery company. The kr190m market-cap company posted a loss in its most recent financial year of kr76m and a latest trailing-twelve-month loss of kr71m shrinking the gap between loss and breakeven. As path to profitability is the topic on Nanexa's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Nanexa

According to some industry analysts covering Nanexa, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr16m in 2024. So, the company is predicted to breakeven approximately 12 months 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 33% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Nanexa given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 2.0% 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 Nanexa to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nanexa's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Historical Track Record: What has Nanexa'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 Nanexa'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.