JonDeTech Sensors AB (publ)'s (STO:JDT) Profit Outlook

By
Simply Wall St
Published
March 30, 2021
OM:JDT

JonDeTech Sensors AB (publ) (STO:JDT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. JonDeTech Sensors AB (publ) engages in the research and development of IR sensors. On 31 December 2020, the kr295m market-cap company posted a loss of kr33m for its most recent financial year. The most pressing concern for investors is JonDeTech Sensors' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for JonDeTech Sensors

JonDeTech Sensors is bordering on breakeven, according to some Swedish Electronic analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr5.0m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% 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.

earnings-per-share-growth
OM:JDT Earnings Per Share Growth March 30th 2021

We're not going to go through company-specific developments for JonDeTech Sensors given that this is a high-level summary, though, bear in mind that by and large 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. JonDeTech Sensors currently 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:

There are too many aspects of JonDeTech Sensors to cover in one brief article, but the key fundamentals for the company can all be found in one place – JonDeTech Sensors' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

  1. Historical Track Record: What has JonDeTech Sensors' 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 JonDeTech Sensors' 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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