Yahoo Finance Aqua Metals, Inc. (NASDAQ:AQMS) Is Expected To Breakeven In The Near Future
Aqua Metals, Inc. (NASDAQ:AQMS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aqua Metals, Inc. engages in the recycling of lead primarily in the United States. The company’s loss has recently broadened since it announced a US$26m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$29m, moving it further away from breakeven. As path to profitability is the topic on Aqua Metals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Aqua Metals
According to the 2 industry analysts covering Aqua Metals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$12m in 2023. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Aqua Metals given that this is a high-level summary, but, 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 Aqua Metals 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 purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Aqua Metals 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 Aqua Metals, take a look at Aqua Metals' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Valuation: What is Aqua Metals 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 Aqua Metals 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 Aqua Metals’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.
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.
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