InCoax Networks AB (publ)'s (STO:INCOAX) Profit Outlook

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With the business potentially at an important milestone, we thought we'd take a closer look at InCoax Networks AB (publ)'s (STO:INCOAX) future prospects. InCoax Networks AB (publ) re-purposes existing property coaxial networks in fiber and fixed wireless access extension deployments for communication service providers in the European Union, North America, and internationally. With the latest financial year loss of kr19m and a trailing-twelve-month loss of kr26m, the kr160m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which InCoax Networks will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Expectations from some of the Swedish Communications analysts is that InCoax Networks is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr32m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 102% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for InCoax Networks given that this is a high-level summary, however, 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.

View our latest analysis for InCoax Networks

One thing we’d like to point out is that InCoax Networks has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on InCoax Networks, so if you are interested in understanding the company at a deeper level, take a look at InCoax Networks' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has InCoax Networks' 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 InCoax Networks' 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.