When will Hitech & Development Wireless Sweden Holding AB (publ) (STO: HDW B) become profitable?
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. On December 31, 2021, the company with a market capitalization of SEK 46 million reported a loss of SEK 27 million for the most recent financial year. The most urgent concern for investors is Hitech & Development Wireless Sweden Holding’s path to profitability – when will it be zero? We have compiled a brief overview of the industry analysts’ expectations of the company, its breakeven year and its implicit growth rate.
Check out our latest analysis for Hitech & Development Wireless Sweden Holding
According to some industry analysts who cover Hitech & Development Wireless Sweden Holding, breakeven is close. They expect the company to report a final loss in 2023, before making a profit of SEK 10 million in 2024. Therefore, the company is expected to reach zero in about two years. How fast must the company grow each year to reach break-even 2024? If you work backwards from analysts’ estimates, it turns out that they expect the company to grow by 75% on an annual basis on average, which signals high confidence from analysts. If this course proves to be too aggressive, the company can become profitable much later than analysts predict.
The underlying development that drives Hitech & Development Wireless Sweden Holding’s growth is not the focus of this broad overview, but remember that a high growth rate is usually not out of the ordinary, especially when a company is in an investment period.
Before we conclude, there is one aspect that is worth mentioning. The company has managed its capital wisely, with liabilities amounting to 13% 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.
There are important grounds for Hitech & Development Wireless Sweden Holding that are not addressed in this article, but we must again emphasize that this is only a basic overview. For a more comprehensive look at Hitech & Development Wireless Sweden Holding, take a look at Hitech & Development Wireless Sweden Holding’s corporate page at Simply Wall St. We have also compiled a list of important factors that you should do further research on:
- 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.