Since the company may have reached an important milestone, we wanted to take a closer look Sileon AB (publ) (STO:SILEON) Future prospects. Sileon AB (publ) provides a SaaS platform that supports businesses in Sweden. The loss of the company with a market capitalization of 89 million krone has narrowed since it announced a loss of 54 million krone for the full fiscal year, compared to the loss of 54 million krone in the last twelve months, as it is approaching the break-even point. Since the path to profitability is the topic that concerns Sileon’s investors, we decided to assess the market sentiment. Below we provide a summary of industry analysts’ expectations for the company.

Check out our latest analysis for Sileon

According to some industry analysts who follow Sileon, the breakeven point is close. They expect the company to report a final loss in 2024 before making a profit of 3.0 million krone in 2025. The company is therefore expected to break even in just over a year. How fast does the company have to grow each year to break even by 2025? Going by the analyst estimates, it turns out that they expect the company to grow by 109% on average annually, which is quite optimistic! If this rate proves to be too aggressive, the company may become profitable much later than the analysts predict.

Since this is a high-level overview, we won’t go into detail about Sileon’s upcoming projects, but keep in mind that a high projected growth rate is not unusual for a company currently in an investment phase.

Before we conclude, there is one more item worth mentioning. Sileon currently has a debt to equity ratio of over 2x. Generally, the rule of thumb is that debt should not exceed 40% of equity, which the company has significantly exceeded in this case. Note that a higher debt load increases the risk of investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis of Sileon, so if you want to gain a deeper understanding of the company, take a look at Sileon’s company page on Simply Wall St. We have also compiled a list of relevant factors that you should examine in more detail:

1. Evaluation: What is Sileon worth today? Is future growth potential already factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sileon is currently mispriced by the market.
2. Leadership team: Having an experienced management team at the top strengthens our confidence in the company – see who sits on Sileon’s board and the background of the CEO.
3. Other high-performing stocks: Are there other stocks with better prospects and proven track records? Discover our free list of these great stocks here.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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