When will GomSpace Group AB (publ) (STO: GOMX) become profitable?

GomSpace Group AB (publ) (STO: GOMX) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. GomSpace Group AB (publ), through its subsidiaries, designs, develops, integrates and manufactures nanosatellites for the academic, defense, government and commercial markets. The loss of the market-cap company of Kroner 559 million has declined since it reported a loss of Kroner 44 million in the year, compared to the last year-over-year loss of Kroner 35 million, as she approaches equilibrium. Many investors question the rate at which GomSpace Group will make a profit, the big question being “when does the business break even?” We’ve put together a brief rundown of industry analysts’ expectations for the company, its breakeven year, and its implied growth rate.

Check out our latest analysis for GomSpace Group

According to the 2 industry analysts covering GomSpace Group, the consensus is that the breakeven point is near. They predict that the company will suffer one final loss in 2021, before generating positive profits of CKr 7.2 million in 2022. Thus, the company is expected to break even in just over a year. How fast will the business need to grow each year to break even by 2022? Working backwards on analysts’ estimates, it turns out that they expect an average growth of 128% year over year, which is extremely dynamic. If the business grows at a slower pace, it will become profitable later than expected.

OM: GOMX Growth in earnings per share December 15, 2021

Since this is a high-level look, we won’t go into details of GomSpace Group’s upcoming projects, however, keep in mind that overall a high growth rate is not unusual, especially when a business is in an investment period.

Before concluding, there is one aspect that deserves to be mentioned. The company has managed its capital wisely, with debt representing 11% of equity. This means that it has mainly financed its operations from equity and its low debt reduces the risk of investing in the loss-making company.

Next steps:

There are some fundamentals of GomSpace Group that are not covered in this article, but we have to stress again that this is only a basic overview. For a more complete overview of the GomSpace Group, check out the GomSpace Group Company page on Simply Wall St. We have also put together a list of key aspects that you should take a closer look at:

  1. Evaluation: What is GomSpace Group worth today? Has the potential for future growth already been factored into the price? Our free research report’s intrinsic value infographic helps to visualize whether GomSpace Group is currently being poorly valued by the market.
  2. Management team: An experienced management team at the helm increases our confidence in the company – take a look at the GomSpace Group board members and the CEO’s background.
  3. 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 any stock 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 has no position in any of the stocks mentioned.


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