Checkin.Com Group AB (publ) (STO:CHECK) On The Verge Of Breaking Even

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) develops software as a service-software that gather technologies, which allow its consumers to connect with brands and services online. The kr934m market-cap company posted a loss in its most recent financial year of kr7.5m and a latest trailing-twelve-month loss of kr6.0m shrinking the 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. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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 kr6.0m in 2023. 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 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, which is extremely buoyant. 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 Checkin.Com Group given that this is a high-level summary, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 8.0% 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 Checkin.Com Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Checkin.Com 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 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.