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.
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.
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.
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:
- 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.
- 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.
- 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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