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

With the business potentially at an important milestone, we thought we'd take a closer look at Nosa Plugs AB's (STO:NOSA) future prospects. Nosa Plugs AB, a medical technology company, manufactures and sells intranasal breathing products primarily in Europe and North America. With the latest financial year loss of kr47m and a trailing-twelve-month loss of kr16m, the kr147m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Nosa Plugs' 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.

See our latest analysis for Nosa Plugs

According to some industry analysts covering Nosa Plugs, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr5.5m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% year-on-year, on average, 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.

Given this is a high-level overview, we won’t go into details of Nosa Plugs' upcoming projects, however, bear in mind that generally 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. The company has managed its capital prudently, with debt making up 2.9% 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 Nosa Plugs 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 Nosa Plugs, take a look at Nosa Plugs' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com