With the business potentially at an important milestone, we thought we’d take a closer look at Hitech & Development Wireless Sweden Holding AB (publ)’s (STO:HDW B) future prospects. Hitech & Development Wireless Sweden Holding AB (publ) provides technology and services within Internet of Things (IoT) and real-time location system (RTLS) in Sweden. The kr32m market-cap company posted a loss in its most recent financial year of kr35m and a latest trailing-twelve-month loss of kr29m shrinking the gap between loss and breakeven. The most pressing concern for investors is Hitech & Development Wireless Sweden Holding’s path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Hitech & Development Wireless Sweden Holding

Hitech & Development Wireless Sweden Holding is bordering on breakeven, according to some Swedish Communications analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr26m in 2025. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 101%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Hitech & Development Wireless Sweden Holding’s growth isn’t the focus of this broad overview, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 15% 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:

This article is not intended to be a comprehensive analysis on Hitech & Development Wireless Sweden Holding, so if you are interested in understanding the company at a deeper level, take a look at Hitech & Development Wireless Sweden Holding’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 Hitech & Development Wireless Sweden Holding’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 Hitech & Development Wireless Sweden Holding’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.