Tobii AB (publ) (STO:TOBII) Is About To Turn The Corner

With the business potentially at an important milestone, we thought we'd take a closer look at Tobii AB (publ)'s (STO:TOBII) future prospects. Tobii AB (publ) develops and sells eye-tracking technology and solutions in Sweden, Europe, Middle East, Africa, the United States, and internationally. The kr388m market-cap company posted a loss in its most recent financial year of kr217m and a latest trailing-twelve-month loss of kr295m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Tobii's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Expectations from some of the Swedish Tech analysts is that Tobii is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr1.0m in 2026. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 125%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Tobii's growth isn’t the focus of this broad overview, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Tobii

One thing we would like to bring into light with Tobii is its debt-to-equity ratio of 128%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Tobii which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Tobii, take a look at Tobii's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Tobii worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Tobii is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tobii’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.