Breakeven On The Horizon For Huddlestock Fintech AS (OB:HUDL)

We feel that now is a pretty good time to analyze Huddlestock Fintech AS’ (OB:HUDL) business as it stands, the company may be on its way to a significant achievement. Huddlestock Fintech AS, a fintech company, develops and implements software as a service solutions for custodian banks, asset managers and trading venues. With the last financial year’s loss of NOK 20 million and a loss of NOK 27 million in twelve months, the company with a market value of NOK 301 million reinforced the loss by moving further away from the breakeven target. Since the path to profitability is the topic for Huddlestock Fintech’s investors, we decided to measure market sentiment. We’ve put together a brief overview of industry analysts’ expectations for the company, its breakeven year and its implied growth rate.

See our latest analysis for Huddlestock Fintech

According to some industry analysts who cover Huddlestock Fintech, breakeven is close. They expect the company to make a final loss in 2023, before making a profit of NOK 10 million in 2024. The company is therefore projected to break even in 2 years from today. At what rate will the company have to grow year over year to break even on this date? Using a line of best fit, we calculated an average annual growth rate of 97%, signaling high analyst confidence. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.

Given that this is a high-level overview, we won’t go into details about Huddlestock Fintech’s upcoming projects, but keep in mind that a high growth rate is mostly not out of the ordinary, especially when a company is in a period of investment .

One thing we would like to point out is that the company has managed its capital sensibly, with debt making up 9.3% of equity. This means that the company has mainly financed its operations from equity, and its low debt obligations reduce the risk surrounding investment in the loss-making company.

Next step:

There are important fundamentals of Huddlestock Fintech that are not covered in this article, but again we must emphasize that this is only a basic overview. For a more comprehensive look at Huddlestock Fintech, check out Huddlestock Fintech’s company page on Simply Wall St. We’ve also compiled a list of relevant factors to look at:

1. Historic track record: How has Huddlestock Fintech been performing lately? Go into more detail in the previous track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management group: An experienced management team at the helm increases our confidence in the business – take a look at who sits on Huddlestock Fintech’s board and the CEO’s background.
3. Other high performing stocks: Are there other stocks that offer better prospects with proven results? Explore our free list of these great stocks here.

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This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.