When will Hitech & Development Wireless Sweden Holding AB (publ) (STO: HDW B) reach equilibrium?
We feel that now is a pretty good time to analyze Hitech & Development Wireless Sweden Holding AB (publ) s (STO: HDW B) the business as it stands, the company can be on the verge of a significant achievement. Hitech & Development Wireless Sweden Holding AB (publ) provides technology and services within the Internet of Things (IoT) and real-time location systems (RTLS) in Sweden. The company’s loss has recently widened since it announced a loss of SEK 23 million throughout the financial year, compared with the most recent twelve-month loss of SEK 30 million, which moved it further away from the breakeven. Many investors wonder at what pace Hitech & Development Wireless Sweden Holding will make a profit, with the big question being “when will the company go to zero?” In this article, we will touch on the expectations of the company’s growth and when analysts expect it to be profitable.
See our latest analysis for Hitech & Development Wireless Sweden Holding
Expectations from some of the Swedish communications analysts are that Hitech & Development Wireless Sweden Holding is on the verge of breakeven. They expect that the company will report a final loss in 2022, before making a profit of SEK 8.0 million in 2023. So the company is forecast to reach zero in about two years. What rate will the company need to grow from year to year to reach break-even on this date? Using a line with the best fit, we calculated an average annual growth rate of 69%, which is quite optimistic! If this course proves to be too aggressive, the company can become profitable much later than analysts predict.
As this is a high-level overview, we will not go into details about Hitech & Development Wireless Sweden Holding’s upcoming projects, but take into account that in general a high forecast growth rate is not uncommon for a company that is currently undergoing an investment. period.
Before we conclude, there is one aspect that is worth mentioning. The company has managed its capital with care, with liabilities amounting to 7.5% of equity. This means that you have predominantly financed your business with equity and its low debt ratio reduces the risk of investing in the loss-making company.
Next step:
There are too many aspects of Hitech & Development Wireless Sweden Holding to cover in a short article, but the most important foundations for the company can all be found in one place – Hitech & Development Wireless Sweden Holding’s company page on Simply Wall St. We have also compiled a list of key factors you should look at:
- Historical track record: What has Hitech & Development Wireless Sweden Holding’s results looked like in the past? Go into more detail in the previous merit list analysis and take a look at the free visual representations of our analysis for more clarity.
- Management team: An experienced management team at the helm increases our confidence in the business – take a look at who sits on Hitech & Development Wireless Sweden Holding’s board and CEO’s background.
- Other high-performing stocks: Are there other stocks that offer better future prospects with proven credentials? Explore our free list of these amazing stocks here.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using an impartial method and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.