When Will Nosa Plugs AB (STO:NOSA) Turn A Profit?

Nosa Plugs AB (STO:NOSA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nosa Plugs AB, a medical technology company, manufactures and sells intranasal breathing products primarily in Europe and North America. The kr125m market-cap company’s loss lessened since it announced a kr47m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr13m, as it approaches breakeven. Many investors are wondering about the rate at which Nosa Plugs will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Nosa Plugs

Expectations from some of the Swedish Medical Equipment analysts is that Nosa Plugs is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr800k in 2025. Therefore, the company is expected 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 87% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Nosa Plugs' growth isn’t the focus of this broad overview, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.3% 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 Nosa Plugs to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nosa Plugs' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Nosa Plugs' 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 Nosa Plugs' 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.