Yahoo Finance Beyond Frames Entertainment AB (publ) (FRA:8WP) Is About To Turn The Corner
Beyond Frames Entertainment AB (publ) (FRA:8WP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Beyond Frames Entertainment AB (publ) engages in the game creation and publishing business in Sweden. The €30m market-cap company announced a latest loss of kr7.6m on 31 December 2023 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.
Check out our latest analysis for Beyond Frames Entertainment
According to the 2 industry analysts covering Beyond Frames Entertainment, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr6.0m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 82%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Beyond Frames Entertainment's upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
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 typically has high 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 put together a list of relevant factors you should further research:
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.
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.
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.
