Yahoo Finance When Will Clavister Holding AB (publ.) (STO:CLAV) Breakeven?
Clavister Holding AB (publ.)'s (STO:CLAV): Clavister Holding AB (publ.), together with its subsidiaries, develops and sells cyber security solutions in worldwide. The kr366m market-cap posted a loss in its most recent financial year of -kr141.6m and a latest trailing-twelve-month loss of -kr152.6m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which CLAV will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CLAV, its year of breakeven and its implied growth rate.
View our latest analysis for Clavister Holding AB (publ.)
Expectation from Software analysts is CLAV is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of kr18m in 2022. Therefore, CLAV is expected to breakeven roughly 2 years from today. How fast will CLAV have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, CLAV may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of CLAV’s upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with CLAV is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on CLAV, so if you are interested in understanding the company at a deeper level, take a look at CLAV’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:
Valuation: What is CLAV 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 CLAV is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clavister Holding AB (publ.)’s board and the CEO’s back ground.
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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