The breakeven point is close for OptiCept Technologies AB (publ) (STO: OPTI)
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We think now is the right time to analyze OptiCept Technologies AB (publ) ‘s (STO: OPTI) because it looks like the company is on the cusp of a tremendous accomplishment. OptiCept Technologies AB (publ) provides technology to maintain the flavor, shape and structure of vegetables, fruits and berries for the freezing and thawing process. With the latest loss of Kroner 14 million in the year and a loss of Kroner 18 million year-over-year, the Kroner 1.2 billion market-cap company amplified its loss by moving further away from its goal of balance. As the path to profitability is the topic in the minds of OptiCept Technologies investors, we decided to assess market sentiment. In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
Check out our latest review for OptiCept Technologies
The expectations of some Swedish machine analysts are that OptiCept Technologies is about to break even. They predict that the company will suffer one last loss in 2020, before generating positive profits of 40 million crowns in 2021. The company should therefore break even in about a year or less! How fast will the business need to grow to meet the consensus forecast that anticipates equilibrium by 2021? Looking back at analysts’ estimates, it turns out that they expect an average growth of 89% year over year, which is pretty optimistic! If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level overview, we won’t go into details of OptiCept Technologies’ upcoming projects, but keep in mind that overall a rate high growth is not unusual, especially when a business is in an investment period.
One thing we would like to point out is that OptiCept Technologies has no debt on its balance sheet, which is rare for a growing loss-making company, which typically has high debt relative to its equity. The company currently operates solely on financing from its shareholders and has no debt, reducing concerns about repayments and making it a less risky investment.
Next steps:
Some fundamentals of OptiCept technologies are not covered in this article, but we must again stress that this is only a basic overview. For a more complete overview of OptiCept Technologies, check out OptiCept Technologies’ company page on Simply Wall St. We have also put together a list of relevant factors you should research further:
- Evaluation: What is OptiCept Technologies worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether OptiCept Technologies is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the OptiCept Technologies board members and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St does not have any position in the mentioned stocks.
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