Cint Group AB (publ)'s (STO:CINT) Shift From Loss To Profit

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 gathering worldwide. With the latest financial year loss of €353m and a trailing-twelve-month loss of €374m, the kr2.2b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Cint Group'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.

View 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 2024, before turning a profit of €7.2m in 2025. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 110%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Cint Group's growth isn’t the focus of this broad overview, though, keep 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 judiciously, with debt making up 14% 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 Cint Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cint Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

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.