When Will Cint Group AB (publ) (STO:CINT) Turn A Profit?

Cint Group AB (publ) (STO:CINT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cint Group AB (publ) provides software solutions for digital insights and research technology worldwide. The kr2.7b 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 €448m, as it approaches breakeven. The most pressing concern for investors is Cint Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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 €6.3m in 2025. The company is therefore projected to breakeven just over a year 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 143%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Cint Group's upcoming projects, but, 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 prudently, 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 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 put together 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com