Analysts Are Optimistic We'll See A Profit From Polygiene AB (publ.) (STO:POLYG)

With the business potentially at an important milestone, we thought we'd take a closer look at Polygiene AB (publ.)'s (STO:POLYG) future prospects. Polygiene AB (publ.) develops, manufactures, and sells odor control solutions for clothes, sports equipment, textiles, and other materials in Asia, Europe, North America, and internationally. The kr920m market-cap company announced a latest loss of kr1.7m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is Polygiene AB (publ.)'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 Polygiene AB (publ.)

Expectations from some of the Swedish Chemicals analysts is that Polygiene AB (publ.) is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr55m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 48% is expected, 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.

We're not going to go through company-specific developments for Polygiene AB (publ.) given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up -0.6% 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 too many aspects of Polygiene AB (publ.) to cover in one brief article, but the key fundamentals for the company can all be found in one place – Polygiene AB (publ.)'s company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is Polygiene AB (publ.) 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 Polygiene AB (publ.) 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 Polygiene AB (publ.)’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. 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.
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