Breakeven point on the horizon for Beyond Frames Entertainment AB (publ) (FRA:8WP)

With the business potentially at a major milestone, we thought we’d take a closer look Beyond Frames Entertainment AB (publ) (FR:8WP) future perspectives. Beyond Frames Entertainment AB (publ), a video game company, is engaged in the business of creating and publishing games in Sweden. The company with a market capitalization of 21 million euros posted a loss in its most recent financial year of 7.6 million crowns and a loss of 13 million crowns in the last twelve months, creating an even larger gap between losses and balance. The most pressing concern for investors is Beyond Frames Entertainment’s path to profitability: When will it break even? In this article, we will cover the company’s growth expectations and when analysts expect it to become profitable.

See our latest analysis for Beyond Frames Entertainment

The consensus of two of the German entertainment analysts is that Beyond Frames Entertainment is on the verge of breaking even. They anticipate that the company will incur a final loss in 2024, before generating positive profits of 5.0 million crowns in 2025. Therefore, the company is expected to break even in just over a year. How fast will the company have to grow each year to break even in 2025? If we work backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which is extremely buoyant. If the business grows at a slower rate, it will be profitable at a later date than expected.

Since this is a high-level overview, we won’t go into details of Beyond Frames Entertainment’s upcoming projects; However, keep in mind that generally a high growth rate is not out of the ordinary, especially when a company is in an investment period.

One thing we’d like to point out is that Beyond Frames Entertainment 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. This means that the company has been operating exclusively on its equity investment and does not have any debt load. This aspect reduces the risk of investing in the loss-making company.

Next steps:

There are too many aspects of Beyond Frames Entertainment to cover in a short article, but the key fundamentals of the company can all be found in one place: Beyond Frames Entertainment Company Page on Simply Wall St. We have also compiled a list of relevant factors that you should investigate further:

1. Valuation: How much is Beyond Frames Entertainment worth today? Has future growth potential already been factored into the price? He Intrinsic value infographic in our free research report helps visualize if the market is currently mispricing Beyond Frames Entertainment.

2. Management team: An experienced management team at the helm increases our confidence in the business – take a look at Who is on the board of directors of Beyond Frames Entertainment and the background of the CEO.

3. Other high-yield stocks: Are there other stocks that offer better prospects with proven track records? Explore our free list of these great stocks here.

Do you have any comments about this article? Worried about content? Get in touch with us directly. Alternatively, email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.