Breakeven On The Horizon For Kleos Space S.A. (ASX:KSS)
Kleos Space S.A. (ASX:KSS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kleos Space S.A., together with its subsidiaries, engages in the development of the space enabled, activity-based intelligence, and data-as-a-service (DaaS) products in Luxembourg and internationally. The AU$104m market-cap company announced a latest loss of €6.4m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is Kleos Space'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.
View our latest analysis for Kleos Space
Expectations from some of the Australian Professional Services analysts is that Kleos Space is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of €6.8m in 2023. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 71%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Kleos Space's growth isn’t the focus of this broad overview, but, keep in mind that by and large 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 The company has managed its capital judiciously, with debt making up 1.2% 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 key fundamentals of Kleos Space 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 Kleos Space, take a look at Kleos Space's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
Valuation: What is Kleos Space 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 Kleos Space is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kleos Space’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.
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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.
