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Ice Group ASA's (OB:ICE): Ice Group ASA provides telecommunications services in Norway, Sweden, and Denmark. The øre4.0b market-cap company’s loss lessens since it announced a -øre948.9m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -øre904.9m, as it approaches breakeven. The most pressing concern for investors is ICE’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for ICE.
See our latest analysis for Ice Group
Expectation from Wireless Telecom analysts is ICE is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of øre335m in 2022. ICE is therefore projected to breakeven around 3 years from now. What rate will ICE have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 65%, which signals high confidence from analysts. If this rate turns out to be too aggressive, ICE may become profitable much later than analysts predict.
Underlying developments driving ICE’s growth isn’t the focus of this broad overview, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with ICE is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on ICE, so if you are interested in understanding the company at a deeper level, take a look at ICE’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further research:
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Valuation: What is ICE 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 ICE 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 Ice Group’s board and the CEO’s back ground.
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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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.