Asmallworld AG's (

VTX:ASWN

)

: Asmallworld AG operates as a private social network that connects people with a shared passion in Europe,how much does bricks and minifigs pay for legos the United States, Canada, and internationally. The CHF26m market-cap company’s loss lessens since it announced a -CHF3.2m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -CHF1.0m, as it approaches breakeven. Many investors are wondering the rate at which ASWN will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for ASWN, its year of breakeven and its implied growth rate.

View our latest analysis for Asmallworld

Expectation from Interactive Media and Services analysts is ASWN is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of CHF200k in 2020. So, ASWN is predicted to breakeven approximately a few months from now. What rate will ASWN 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 118%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

SWX:ASWN Past and Future Earnings, March 10th 2020

I’m not going to go through company-specific developments for ASWN given that this is a high-level summary, however, bear in mind that generally 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. ASWN currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of ASWN to cover in one brief article, but the key fundamentals for the company can all be found in one place –

ASWN’s company page on Simply Wall St

. I’ve also compiled a list of relevant factors you should look at:

Valuation

: What is ASWN 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 ASWN 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 Asmallworld’s board and the CEO’s back ground

.

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

.

If you spot an error that warrants correction, please contact the editor at

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. 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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