Breakeven Is Near for Nordic LEVEL Group AB (publ.) (STO:LEVEL)

We feel now is a pretty good time to analyse Nordic LEVEL Group AB (publ.)'s (STO:LEVEL) business as it appears the company may be on the cusp of a considerable accomplishment. Nordic LEVEL Group AB (publ.) provides safety and security solutions primarily in Sweden. The kr121m market-cap company posted a loss in its most recent financial year of kr2.1m and a latest trailing-twelve-month loss of kr13m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Nordic LEVEL Group AB (publ.)'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.

View our latest analysis for Nordic LEVEL Group AB (publ.)

Consensus from 2 of the Swedish Electronic analysts is that Nordic LEVEL Group AB (publ.) is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr11m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% 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.

We're not going to go through company-specific developments for Nordic LEVEL Group AB (publ.) given that this is a high-level summary, but, keep in mind 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 judiciously, with debt making up 34% 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:

This article is not intended to be a comprehensive analysis on Nordic LEVEL Group AB (publ.), so if you are interested in understanding the company at a deeper level, take a look at Nordic LEVEL Group AB (publ.)'s company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is Nordic LEVEL Group AB (publ.) 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 Nordic LEVEL Group AB (publ.) 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 Nordic LEVEL Group AB (publ.)’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.