WEBULL
WebtradeDownload

Loss-Making Keo Capital AB (publ) (STO:KEOC) Expected To Breakeven In The Medium-Term

Simply Wall St · 2d ago

Keo Capital AB (publ) (STO:KEOC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Keo Capital AB (publ), a fintech company, operates a digital credit platform focused on B2B payments and embedded working capital solutions in Mexico, Brazil, Canada, and Latin America. With the latest financial year loss of US$19m and a trailing-twelve-month loss of US$49m, the kr3.0b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Keo Capital'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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

According to some industry analysts covering Keo Capital, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$8.3m 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 115% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
OM:KEOC Earnings Per Share Growth September 2nd 2026

We're not going to go through company-specific developments for Keo Capital given that this is a high-level summary, but, keep in mind that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for Keo Capital

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 5.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Keo Capital 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 Keo Capital, take a look at Keo Capital's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

  1. Historical Track Record: What has Keo Capital'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 Keo Capital'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.