Sedana Medical AB (publ)’s (STO:SEDANA): Sedana Medical AB (publ), a medical technology company, develops, markets, and sells medical devices in Sweden and internationally. The kr3.6b market-cap company announced a latest loss of -kr14.6m on 31 December 2019 for its most recent financial year result. The most pressing concern for investors is SEDANA’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for SEDANA’s growth and when analysts expect the company to become profitable.
Expectation from Medical Equipment analysts is SEDANA is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr4.0m in 2021. So, SEDANA is predicted to breakeven approximately a few months from now. What rate will SEDANA have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 105%, which is rather optimistic! If this rate turns out to be too aggressive, SEDANA may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of SEDANA’s upcoming projects, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that SEDANA has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. SEDANA currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of SEDANA to cover in one brief article, but the key fundamentals for the company can all be found in one place – SEDANA’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further examine:
- Historical Track Record: What has SEDANA’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sedana Medical’s board and the CEO’s back ground.
- 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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