Checkin.Com Group AB (Publ) (STO:CHECK): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Checkin.Com Group AB (Publ)'s (STO:CHECK) business as it appears the company may be on the cusp of a considerable accomplishment. Checkin.Com Group AB (Publ) operates as a SaaS company in Sweden. The kr909m market-cap company posted a loss in its most recent financial year of kr6.8m and a latest trailing-twelve-month loss of kr11m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Checkin.Com Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Checkin.Com Group

Expectations from some of the Swedish Software analysts is that Checkin.Com Group is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of kr12m in 2023. So, the company is predicted to breakeven just over a year 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 80% is expected, which is rather optimistic! 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 Checkin.Com Group given that this is a high-level summary, though, bear 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 11% 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:

This article is not intended to be a comprehensive analysis on Checkin.Com Group, so if you are interested in understanding the company at a deeper level, take a look at Checkin.Com Group's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is Checkin.Com 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 Checkin.Com 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 Checkin.Com 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. 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.