Analysts Are Optimistic We'll See A Profit From BYGGFAKTA GROUP Nordic HoldCo AB (publ) (STO:BFG)

BYGGFAKTA GROUP Nordic HoldCo AB (publ) (STO:BFG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BYGGFAKTA Group Nordic Holdco AB (Publ) operates as a software and information company within the construction industry primary in Nordic countries and the United Kingdom. The kr10.0b market-cap company announced a latest loss of kr307m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on BYGGFAKTA GROUP Nordic HoldCo'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.

See our latest analysis for BYGGFAKTA GROUP Nordic HoldCo

According to the 4 industry analysts covering BYGGFAKTA GROUP Nordic HoldCo, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of kr185m in 2022. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for BYGGFAKTA GROUP Nordic HoldCo given that this is a high-level summary, but, 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 30% 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 BYGGFAKTA GROUP Nordic HoldCo to cover in one brief article, but the key fundamentals for the company can all be found in one place – BYGGFAKTA GROUP Nordic HoldCo's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Valuation: What is BYGGFAKTA GROUP Nordic HoldCo 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 BYGGFAKTA GROUP Nordic HoldCo 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 BYGGFAKTA GROUP Nordic HoldCo’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.