Analysts are bullish we will see a profit from Enzymatica AB (STO: ENZY)
We think now is the right time to analyze Enzymatica AB (STO: ENZY) because it looks like the company is on the cusp of a huge accomplishment. Enzymatica AB, a life sciences company, develops and sells medical devices for infection-related illnesses in Sweden and abroad. The Kroner 1.5 billion market-cap company reported a final loss of Kroner 23 million on March 31, 2021 for its latest result for the year. Many investors question the rate at which Enzymatica will make a profit, the big question being “when does the business break even?” Below, we’ll provide a high-level summary of industry analyst expectations for the company.
See our latest review for Enzymatica
Enzymatica is close to equilibrium, according to 2 analysts from Swedish Pharmaceuticals. They expect the company to make a terminal loss in 2021, before making a profit of CKR 5.0 million in 2022. Thus, the company is expected to break even in about 12 months or less. How fast will the business need to grow to achieve consensus estimates of equilibrium in less than 12 months? Using a line of best fit, we calculated an average annual growth rate of 104%, which is extremely strong. If the business grows at a slower pace, it will become profitable later than expected.
The developments underlying Enzymatica’s growth are not the focus of this general overview, however, keep in mind that a pharmaceutical company typically has irregular cash flows which depend on the drug and the stage of development of the drug. product in which the company is located. So, a strong growth rate is not uncommon, especially when a company is in a period of investment.
Before concluding, there is one aspect that deserves to be mentioned. The company has managed its capital prudently, the debt being made up of equity. This means that it has primarily funded its operations from equity and its low debt reduces the risk of investing in the loss-making company.
There are too many aspects of Enzymatica to cover in a short article, but the fundamentals of the business can all be found in one place – the Enzymatica company page on Simply Wall St. We also have compiled a list of important factors that you should look at. at:
- Evaluation: What is Enzymatica worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Enzymatica is currently poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on the Enzymatica board and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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