Yahoo Finance Calisen plc (LON:CLSN): When Will It Breakeven?
Calisen plc's (LON:CLSN): Calisen plc owns and manages energy infrastructure assets in the United Kingdom. On 31 December 2019, the UK£1.0b market-cap posted a loss of -UK£80.1m for its most recent financial year. Many investors are wondering the rate at which CLSN will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for CLSN’s growth and when analysts expect the company to become profitable.
View our latest analysis for Calisen
Consensus from the 3 Commercial Services analysts is CLSN is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of UK£25m in 2021. CLSN is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which CLSN must grow year-on-year. It turns out an average annual growth rate of 104% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, CLSN may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of CLSN’s upcoming projects, but, bear in mind that typically 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. CLSN 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are key fundamentals of CLSN which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CLSN, take a look at CLSN’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
Valuation: What is CLSN 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 CLSN 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 Calisen’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 editorial-team@simplywallst.com. 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.
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