Market Sentiment Around Loss-Making Acconeer AB (publ) (STO:ACCON)

Acconeer AB (publ) (STO:ACCON) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Acconeer AB (publ) develops radar sensing solutions worldwide. With the latest financial year loss of kr47m and a trailing-twelve-month loss of kr40m, the kr435m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Acconeer's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Acconeer

Acconeer is bordering on breakeven, according to some Swedish Electronic analysts. They expect the company to post a final loss in 2024, before turning a profit of kr7.5m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 117% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Acconeer's upcoming projects, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Acconeer currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Acconeer, so if you are interested in understanding the company at a deeper level, take a look at Acconeer's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Historical Track Record: What has Acconeer'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 Acconeer'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.