Analysts Expect Ortoma AB (publ) (STO:ORT B) To Breakeven Soon

We feel now is a pretty good time to analyse Ortoma AB (publ)'s (STO:ORT B) business as it appears the company may be on the cusp of a considerable accomplishment. Ortoma AB (publ) provides orthopedic surgical products for use in joint implant surgery in Sweden. With the latest financial year loss of kr22m and a trailing-twelve-month loss of kr30m, the kr303m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Ortoma's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Ortoma

Expectations from some of the Swedish Medical Equipment analysts is that Ortoma is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr19m in 2025. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Ortoma's upcoming projects, but, 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.

One thing we’d like to point out is that Ortoma has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Ortoma 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 Ortoma, take a look at Ortoma's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Ortoma 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 Ortoma 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 Ortoma’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.