Hitech & Development Wireless Sweden Holding AB (publ) (STO:HDW B): Is Breakeven Near?

We feel now is a pretty good time to analyse Hitech & Development Wireless Sweden Holding AB (publ)'s (STO:HDW B) business as it appears the company may be on the cusp of a considerable accomplishment. Hitech & Development Wireless Sweden Holding AB (publ) provides technology and services within Internet of Things (IoT) and real-time location system (RTLS) in Sweden. The kr28m market-cap company’s loss lessened since it announced a kr35m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr29m, as it approaches breakeven. The most pressing concern for investors is Hitech & Development Wireless Sweden Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Hitech & Development Wireless Sweden Holding

Expectations from some of the Swedish Communications analysts is that Hitech & Development Wireless Sweden Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr33m in 2025. The company is therefore projected to breakeven just over a year from now. 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 110% is expected, 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 Hitech & Development Wireless Sweden Holding's growth isn’t the focus of this broad overview, though, take into account 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. The company has managed its capital prudently, with debt making up 12% 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 Hitech & Development Wireless Sweden Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hitech & Development Wireless Sweden Holding's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

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. 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.