Market Sentiment Around Loss-Making InCoax Networks AB (publ) (STO:INCOAX)

We feel now is a pretty good time to analyse InCoax Networks AB (publ)'s (STO:INCOAX) business as it appears the company may be on the cusp of a considerable accomplishment. InCoax Networks AB (publ) provides networking products and solutions to fiber/LAN and fixed wireless access operators, internet service providers, and hospitality customers in European Union, North America, and internationally. The kr209m market-cap company announced a latest loss of kr19m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is InCoax Networks' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

InCoax Networks is bordering on breakeven, according to some Swedish Communications analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr32m in 2026. The company is therefore projected 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 93% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving InCoax Networks' growth isn’t the focus of this broad overview, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out 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 typically has high 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:

There are too many aspects of InCoax Networks to cover in one brief article, but the key fundamentals for the company can all be found in one place – InCoax Networks' 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 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.