Analysts Expect Breakeven For Acconeer AB (publ) (STO:ACCON) Before Long

We feel now is a pretty good time to analyse Acconeer AB (publ)'s (STO:ACCON) business as it appears the company may be on the cusp of a considerable accomplishment. Acconeer AB (publ) develops radar sensing solutions worldwide. With the latest financial year loss of kr47m and a trailing-twelve-month loss of kr46m, the kr244m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Acconeer will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Acconeer

Expectations from some of the Swedish Electronic analysts is that Acconeer is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr50m in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Acconeer's growth isn’t the focus of this broad overview, though, keep 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. Acconeer currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Acconeer 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 Acconeer, take a look at Acconeer's company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Historical Track Record: What has Acconeer's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Acconeer'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.