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https://**.st/stocks/au/commercial-services/asx-kss/kleos-space-shares/news/kleos-space-sa-asxkss-is-expected-to-breakeven-in-the-near-f

Kleos Space S.A. (ASX:KSS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kleos Space S.A., together with its subsidiaries, engages in the development of the space enabled, activity-based intelligence, and data-as-a-service (DaaS) products in Luxembourg and internationally. The AU$141m market-cap company posted a loss in its most recent financial year of €4.9m and a latest trailing-twelve-month loss of €7.1m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Kleos Space will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Kleos Space

According to some industry analysts covering Kleos Space, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of €10m in 2022. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 55% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

ASX:KSS Earnings Per Share Growth December 13th 2021

Given this is a high-level overview, we won’t go into details of Kleos Space's upcoming projects, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 1.9% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.