Yahoo Finance Genmin Limited (ASX:GEN) Is Expected To Breakeven In The Near Future
Genmin Limited (ASX:GEN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Genmin Limited, an exploration and development company, produces iron ores in Africa. The AU$66m market-cap company announced a latest loss of US$13m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Genmin will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Genmin
According to some industry analysts covering Genmin, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$16m in 2025. 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 122% 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.
Underlying developments driving Genmin's growth isn’t the focus of this broad overview, though, take into account that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 22% 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.
Next Steps:
There are too many aspects of Genmin to cover in one brief article, but the key fundamentals for the company can all be found in one place – Genmin's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Historical Track Record: What has Genmin'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 Genmin'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.
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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.
