Loss-Making OssDsign AB (publ) (STO:OSSD) Expected To Breakeven In The Medium-Term

With the business potentially at an important milestone, we thought we'd take a closer look at OssDsign AB (publ)'s (STO:OSSD) future prospects. OssDsign AB (publ) designs, manufactures, and sells implants and material technology for bone regeneration in Sweden, Germany, the United States, the United Kingdom, rest of Europe, and internationally. The company’s loss has recently broadened since it announced a kr99m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr109m, moving it further away from breakeven. As path to profitability is the topic on OssDsign'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.

View our latest analysis for OssDsign

Consensus from 3 of the Swedish Medical Equipment analysts is that OssDsign is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr32m in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for OssDsign given that this is a high-level summary, however, take into account that typically 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 prudently, with debt making up 0.4% 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 OssDsign 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 OssDsign, take a look at OssDsign's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is OssDsign 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 OssDsign 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 OssDsign’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.