In This Article:
With the business potentially at an important milestone, we thought we'd take a closer look at Beyond Frames Entertainment AB (publ)'s (FRA:8WP) future prospects. Beyond Frames Entertainment AB (publ), a video game company, engages in the game creation and publishing business in Sweden. The €15m market-cap company announced a latest loss of kr19m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Beyond Frames Entertainment's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Beyond Frames Entertainment
According to the 3 industry analysts covering Beyond Frames Entertainment, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of kr5.0m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Beyond Frames Entertainment's growth isn’t the focus of this broad overview, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Beyond Frames Entertainment currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Beyond Frames Entertainment, so if you are interested in understanding the company at a deeper level, take a look at Beyond Frames Entertainment's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:
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Valuation: What is Beyond Frames Entertainment 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 Beyond Frames Entertainment is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Beyond Frames Entertainment’s board and the CEO’s background.
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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.