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When Will Climeon AB (publ) (STO:CLIME B) Breakeven?

Simply Wall St

Climeon AB (publ)'s (STO:CLIME B): Climeon AB (publ) provides heat power systems in Sweden, Europe, Asia, and North America. The kr2.6b market-cap posted a loss in its most recent financial year of -kr110.9m and a latest trailing-twelve-month loss of -kr134.9m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is CLIME B’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for CLIME B.

Check out our latest analysis for Climeon

Expectation from Electrical analysts is CLIME B is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr77m in 2021. Therefore, CLIME B is expected to breakeven roughly a few months from now. How fast will CLIME 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 75% 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.

OM:CLIME B Past and Future Earnings May 16th 2020

Underlying developments driving CLIME B’s growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before I wrap up, there’s one aspect worth mentioning. CLIME B has managed its capital prudently, with debt making up 16% of equity. This means that CLIME 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 CLIME 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 CLIME B, take a look at CLIME B’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:

  1. Historical Track Record: What has CLIME 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.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Climeon’s board and the CEO’s back ground.
  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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.