Loss-Making Zenicor Medical Systems AB (publ) (NGM:ZENI) Expected To Breakeven – Simply Wall St

Zenicor Medical Systems AB (publ)s (NGM:ZENI): Zenicor Medical Systems AB (publ), a medical technology company, provides products and solutions for the diagnosis of arrhythmia and stroke prevention. The kr78m market-cap companys loss lessens since it announced a -kr2.7m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -kr704.6k, as it approaches breakeven. The most pressing concern for investors is ZENIs path to profitability when will it breakeven? Below I will provide a high-level summary of the industry analysts expectations for ZENI.

Check out our latest analysis for Zenicor Medical Systems

According to the industry analysts covering ZENI, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of kr400k in 2021. ZENI is therefore projected to breakeven around a few months from now. How fast will ZENI have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 113% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, ZENI may become profitable much later than analysts predict.

Im not going to go through company-specific developments for ZENI given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing Id like to point out is that ZENI has managed its capital judiciously, with debt making up 24% of equity. This means that ZENI has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

This article is not intended to be a comprehensive analysis on ZENI, so if you are interested in understanding the company at a deeper level, take a look at ZENIs company page on Simply Wall St. Ive also put together a list of essential factors you should look at:

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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Loss-Making Zenicor Medical Systems AB (publ) (NGM:ZENI) Expected To Breakeven - Simply Wall St