Breakeven On The Horizon For Hitech & Development Wireless Sweden Holding AB (publ) (STO:HDW B)

With the business potentially at an important milestone, we thought we'd take a closer look at Hitech & Development Wireless Sweden Holding AB (publ)'s (STO:HDW B) future prospects. Hitech & Development Wireless Sweden Holding AB (publ) supplies technology and services within Internet of Things (IoT) and real-time positioning in Sweden. With the latest financial year loss of kr23m and a trailing-twelve-month loss of kr23m, the kr22m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Hitech & Development Wireless Sweden Holding's investors mind, we've decided to gauge market sentiment. 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 Hitech & Development Wireless Sweden Holding

Hitech & Development Wireless Sweden Holding is bordering on breakeven, according to some Swedish Communications analysts. They expect the company to post a final loss in 2022, before turning a profit of kr14m in 2023. Therefore, the company is expected to breakeven roughly 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 66% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Hitech & Development Wireless Sweden Holding's growth isn’t the focus of this broad overview, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 8.8% 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 Hitech & Development Wireless Sweden Holding 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 Hitech & Development Wireless Sweden Holding, take a look at Hitech & Development Wireless Sweden Holding's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has Hitech & Development Wireless Sweden Holding'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 Hitech & Development Wireless Sweden Holding'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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