Analysts Expect Breakeven For Olink Holding AB (publ) (NASDAQ:OLK) Before Long
Olink Holding AB (publ) (NASDAQ:OLK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Olink Holding AB (publ) provides various products and services for the academic, government, biopharmaceutical, biotechnology, and other institutions that focuses on life science research. The US$2.7b market-cap company’s loss lessened since it announced a US$43m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$30m, as it approaches breakeven. The most pressing concern for investors is Olink Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Olink Holding
Consensus from 3 of the American Life Sciences analysts is that Olink Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$14m in 2024. 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 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 93% year-on-year, on average, which is rather optimistic! 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 Olink Holding given that this is a high-level summary, however, keep in mind that by and large a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that Olink Holding has no debt on its balance sheet, which is quite unusual for a cash-burning life science 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 key fundamentals of Olink Holding 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 Olink Holding, take a look at Olink Holding's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Olink Holding's 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 Olink Holding's 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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