When Can We Expect A Profit From Heliospectra AB (publ) (STO:HELIO)?
Heliospectra AB (publ)'s (STO:HELIO): Heliospectra AB (publ) provides lighting solutions for greenhouse and controlled plant growth environments worldwide. The kr211m market-cap company announced a latest loss of -kr51.7m on 31 December 2019 for its most recent financial year result. Many investors are wondering the rate at which HELIO will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for HELIO’s growth and when analysts expect the company to become profitable.
View our latest analysis for Heliospectra
Expectation from Electrical analysts is HELIO is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of kr1.0m in 2022. Therefore, HELIO is expected to breakeven roughly 2 years from now. How fast will HELIO have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% 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.
I’m not going to go through company-specific developments for HELIO given that this is a high-level summary, though, keep in mind that generally 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. HELIO currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. HELIO 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 HELIO 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 HELIO, take a look at HELIO’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further examine:
Historical Track Record: What has HELIO'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 Heliospectra’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.
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.
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