Yahoo Finance When Will CAP-XX Limited (LON:CPX) Breakeven?
CAP-XX Limited (LON:CPX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CAP-XX Limited, together with its subsidiaries, develops, manufactures, and sells supercapacitors primarily in the Asia Pacific, Europe, and North America. The UK£18m market-cap company announced a latest loss of AU$4.9m on 30 June 2022 for its most recent financial year result. As path to profitability is the topic on CAP-XX's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for CAP-XX
CAP-XX is bordering on breakeven, according to the 2 British Electronic analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$3.3m in 2024. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 99% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving CAP-XX's growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. CAP-XX currently 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of CAP-XX 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 CAP-XX, take a look at CAP-XX's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is CAP-XX 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 CAP-XX 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 CAP-XX’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.
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.
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