Analysts Expect Breakeven For OrganoClick AB (publ) (STO:ORGC) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at OrganoClick AB (publ)'s (STO:ORGC) future prospects. OrganoClick AB (publ), a green chemical company, develops and markets biobased and biodegradable chemical products and material technologies for the treatment of nonwoven, technical textile, and wood in Sweden, Other Nordics, the Rest of Europe, Asia, North America, and Oceania. The kr165m market-cap company posted a loss in its most recent financial year of kr18m and a latest trailing-twelve-month loss of kr23m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which OrganoClick will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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OrganoClick is bordering on breakeven, according to some Swedish Chemicals analysts. They expect the company to post a final loss in 2026, before turning a profit of kr2.0m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 69% is expected, which is rather optimistic! 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 OrganoClick's upcoming projects, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for OrganoClick

Before we wrap up, there’s one issue worth mentioning. OrganoClick currently has a debt-to-equity ratio of 156%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on OrganoClick, so if you are interested in understanding the company at a deeper level, take a look at OrganoClick's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is OrganoClick 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 OrganoClick 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 OrganoClick’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.