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Stockmann Oyj ABP’s (HLSE:STCBV): Stockmann Oyj Abp engages in the retailing activities in Finland and internationally. The company’s loss has recently broadened since it announced a -€203.37M loss in the full financial year, compared to the latest trailing-twelve-month loss of -€207.37M, moving it further away from breakeven. Many investors are wondering the rate at which STCBV will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for STCBV.
See our latest analysis for Stockmann Oyj ABP
According to the industry analysts covering STCBV, breakeven is near. They anticipate the company to incur a final loss in 2018, before generating positive profits of €9.53M in 2019. Therefore, STCBV is expected to breakeven roughly a couple of months from now! What rate will STCBV 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 70.14%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into detail the detail of STCBV’s upcoming projects, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one issue worth mentioning. STCBV currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in STCBV’s case is 96.29%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of STCBV which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at STCBV, take a look at STCBV’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:
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Valuation: What is STCBV 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 STCBV 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 Stockmann Oyj ABP’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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.