Bublar Group AB (publ) (STO:BUBL) Is Expected To Breakeven In The Near Future

Bublar Group AB (publ) (STO:BUBL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bublar Group AB (publ), together with its subsidiaries, operates as a visualization and extended reality technology company. The kr269m market-cap company announced a latest loss of kr85m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is Bublar Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Bublar Group

Expectations from some of the Swedish Entertainment analysts is that Bublar Group is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of kr4.0m in 2023. So, the company is predicted to breakeven approximately 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 72% 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.

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

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 22% 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 Bublar Group 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 Bublar Group, take a look at Bublar Group's company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is Bublar Group 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 Bublar Group 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 Bublar Group’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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