Senzime AB (publ) (STO:SEZI) Is Expected To Breakeven In The Near Future

Senzime AB (publ) (STO:SEZI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Senzime AB (publ), a medical device company, develops, manufactures, and markets algorithm-powered patient monitoring systems to increase patient safety during and after surgery in Europe and the United States. The kr491m market-cap company announced a latest loss of kr119m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Senzime will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Consensus from 2 of the Swedish Medical Equipment analysts is that Senzime is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of kr90m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 79% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Senzime given that this is a high-level summary, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Senzime

One thing we’d like to point out is that Senzime 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. 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:

There are too many aspects of Senzime to cover in one brief article, but the key fundamentals for the company can all be found in one place – Senzime's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Senzime 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 Senzime 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 Senzime’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.