When Will Link Solution Co., Ltd. (KOSDAQ:474650) Breakeven?

We feel now is a pretty good time to analyse Link Solution Co., Ltd.'s (KOSDAQ:474650) business as it appears the company may be on the cusp of a considerable accomplishment. Link Solution Co., Ltd. develops and manufactures desktop 3D printers for businesses in South Korea. The ₩281b market-cap company announced a latest loss of ₩2.5b on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Link Solution 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.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Link Solution is bordering on breakeven, according to the 2 South Korean Machinery analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of ₩1.3m in 2026. So, the company is predicted to breakeven just over a year from now. 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 150%, 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 Link Solution's growth isn’t the focus of this broad overview, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Link Solution

Before we wrap up, there’s one issue worth mentioning. Link Solution currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Link Solution's case is 46%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Link Solution which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Link Solution, take a look at Link Solution's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Historical Track Record: What has Link Solution'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Link Solution's board and the CEO’s background.
3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.