Alelion Energy Systems AB (publ) (FRA:2FZ) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Alelion Energy Systems AB (publ)'s (FRA:2FZ) future prospects. Alelion Energy Systems AB (publ) engages in the development, manufacture, and sale of lithium-ion battery systems to industrial customers in Sweden. The €2.6m market-cap company’s loss lessened since it announced a kr70m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr59m, as it approaches breakeven. Many investors are wondering about the rate at which Alelion Energy Systems will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Alelion Energy Systems
According to some industry analysts covering Alelion Energy Systems, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr10m in 2024. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Alelion Energy Systems given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Alelion Energy Systems currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of Alelion Energy Systems to cover in one brief article, but the key fundamentals for the company can all be found in one place – Alelion Energy Systems' company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Historical Track Record: What has Alelion Energy Systems' 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alelion Energy Systems' board and the CEO’s background.
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.
