Yahoo Finance When Will Ceres Power Holdings plc (LON:CWR) Turn A Profit?
Ceres Power Holdings plc's (LON:CWR): Ceres Power Holdings plc, a fuel cell technology and engineering company, engages in the development and commercialization of fuel cell technology in North America, Asia, and Europe. The UK£332m market-cap company announced a latest loss of -UK£4.8m on 30 June 2019 for its most recent financial year result. Many investors are wondering the rate at which CWR will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CWR, its year of breakeven and its implied growth rate.
View our latest analysis for Ceres Power Holdings
According to the 3 industry analysts covering CWR, the consensus is breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of UK£741k in 2022. CWR is therefore projected to breakeven around 3 years from today. What rate will CWR have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 41%, which is rather optimistic! If this rate turns out to be too aggressive, CWR may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of CWR’s upcoming projects, though, keep in mind that by and large 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 aspect worth mentioning. CWR currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. CWR 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:
This article is not intended to be a comprehensive analysis on CWR, so if you are interested in understanding the company at a deeper level, take a look at CWR’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further research:
Historical Track Record: What has CWR'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ceres Power Holdings’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.
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