Yahoo Finance Olink Holding AB (publ) (NASDAQ:OLK): Is Breakeven Near?
We feel now is a pretty good time to analyse Olink Holding AB (publ)'s (NASDAQ:OLK) business as it appears the company may be on the cusp of a considerable accomplishment. Olink Holding AB (publ) develops, produces, markets, and sells biotechnological products and services for the academic, government, biopharmaceutical, biotechnology, service provider, and other institutions that focuses on life science research. The company’s loss has recently broadened since it announced a US$32m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$34m, moving it further away from breakeven. Many investors are wondering about the rate at which Olink Holding will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Olink Holding
Olink Holding is bordering on breakeven, according to the 4 American Life Sciences analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$62m in 2025. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 165%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Olink Holding's growth isn’t the focus of this broad overview, however, bear in mind that by and large a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. Olink Holding currently has no debt on its balance sheet, which is rare for a loss-making life science 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 Olink Holding, so if you are interested in understanding the company at a deeper level, take a look at Olink Holding's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Historical Track Record: What has Olink Holding's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Olink Holding'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
