Breakeven On The Horizon For Cint Group AB (publ) (STO:CINT)

With the business potentially at an important milestone, we thought we'd take a closer look at Cint Group AB (publ)'s (STO:CINT) future prospects. Cint Group AB (publ) provides software solutions for digital insights and research technology worldwide. The kr2.5b market-cap company’s loss lessened since it announced a €448m loss in the full financial year, compared to the latest trailing-twelve-month loss of €430m, as it approaches breakeven. Many investors are wondering about the rate at which Cint Group will turn a profit, with the big question being “when will the company breakeven?” 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 Cint Group

Cint Group is bordering on breakeven, according to the 4 Swedish Software analysts. They expect the company to post a final loss in 2025, before turning a profit of €3.2m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 123% is expected, 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 Cint Group given that this is a high-level summary, though, bear in mind 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 28% 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 Cint 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 Cint Group, take a look at Cint Group's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is Cint 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 Cint 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 Cint 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.