We Might See A Profit From KebNi AB (publ) (STO:KEBNI B) Soon

KebNi AB (publ) (STO:KEBNI B) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. KebNi AB (publ) develops, manufactures, markets, and sells 4-axes stabilizing VSAT antennas for maritime applications under the KebNi Maritime brand. The company’s loss has recently broadened since it announced a kr64m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr69m, moving it further away from breakeven. The most pressing concern for investors is KebNi's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for KebNi

KebNi is bordering on breakeven, according to some Swedish Communications analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr5.0m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 116%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of KebNi's upcoming projects, however, bear in mind 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 KebNi 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of KebNi 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 KebNi, take a look at KebNi's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is KebNi worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether KebNi is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on KebNi’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.