Analysts Expect Concejo AB (publ) (STO:CNCJO B) To Breakeven Soon

Concejo AB (publ) (STO:CNCJO B) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Concejo AB (publ) develops, manufactures, and markets fire safety products and systems in Europe, the United States, Asia, and internationally. On 31 December 2020, the kr920m market-cap company posted a loss of kr176m for its most recent financial year. As path to profitability is the topic on Concejo'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.

See our latest analysis for Concejo

Concejo is bordering on breakeven, according to some Swedish Electronic analysts. They expect the company to post a final loss in 2020, before turning a profit of kr4.5m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 111% 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.

Given this is a high-level overview, we won’t go into details of Concejo's upcoming projects, however, take into account that typically 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 0.3% 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 Concejo to cover in one brief article, but the key fundamentals for the company can all be found in one place – Concejo's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Valuation: What is Concejo 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 Concejo 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 Concejo’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. 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.
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