Nordic LEVEL Group AB (publ.) (STO:LEVEL) Is About To Turn The Corner

With the business potentially at an important milestone, we thought we'd take a closer look at Nordic LEVEL Group AB (publ.)'s (STO:LEVEL) future prospects. Nordic LEVEL Group AB (publ.) provides safety and security solutions primarily in Sweden. On 31 December 2023, the kr176m market-cap company posted a loss of kr2.1m for its most recent financial year. The most pressing concern for investors is Nordic LEVEL Group AB (publ.)'s 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.

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

According to some industry analysts covering Nordic LEVEL Group AB (publ.), breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of kr9.0m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% 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 Nordic LEVEL Group AB (publ.) given that this is a high-level summary, but, keep 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. The company has managed its capital judiciously, with debt making up 25% 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:

There are too many aspects of Nordic LEVEL Group AB (publ.) to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nordic LEVEL Group AB (publ.)'s company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

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.