When Will Cell Impact AB (publ) (STO:CI B) Turn A Profit?
Cell Impact AB (publ)'s (STO:CI B): Cell Impact AB (publ) manufactures and sells bipolar flow plates for hydrogen fuel cells worldwide. With the latest financial year loss of -kr44.6m and a trailing-twelve month of -kr47.8m, the kr90m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which CI B will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CI B, its year of breakeven and its implied growth rate.
Check out our latest analysis for Cell Impact
CI B is bordering on breakeven, according to Machinery analysts. They expect the company to post a final loss in 2020, before turning a profit of kr2.2m in 2021. Therefore, CI B is expected to breakeven roughly 2 years from today. How fast will CI B have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 79% 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.
Given this is a high-level overview, I won’t go into details of CI B’s upcoming projects, though, 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 I’d like to point out is that CI B has managed its capital prudently, with debt making up 18% of equity. This means that CI B 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 CI B which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CI B, take a look at CI B’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should look at:
Historical Track Record: What has CI B'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 Cell Impact’s board and the CEO’s back ground.
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
