Loss-Making Heliospectra AB (publ) (STO:HELIO) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse Heliospectra AB (publ)'s (STO:HELIO) business as it appears the company may be on the cusp of a considerable accomplishment. Heliospectra AB (publ) provides smart LED light technology and light control systems for greenhouse and controlled plant growth environments worldwide. The company’s loss has recently broadened since it announced a kr24m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr40m, moving it further away from breakeven. As path to profitability is the topic on Heliospectra's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to some industry analysts covering Heliospectra, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of kr26m in 2027. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 101% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Heliospectra's growth isn’t the focus of this broad overview, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Heliospectra

One thing we’d like to point out is that Heliospectra has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company 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 too many aspects of Heliospectra to cover in one brief article, but the key fundamentals for the company can all be found in one place – Heliospectra's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Heliospectra'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.
2. 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 background.
3. 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.