Yahoo Finance Analysts Expect Electrovaya Inc. (TSE:EFL) To Breakeven Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Electrovaya Inc.'s (TSE:EFL) future prospects. Electrovaya Inc., together with its subsidiaries, designs, develops, manufactures, and markets lithium-ion based battery products in Canada, the United States, and internationally. With the latest financial year loss of US$2.8m and a trailing-twelve-month loss of US$675.0k, the CA$75m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Electrovaya's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Electrovaya
Electrovaya is bordering on breakeven, according to some Canadian Electrical analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$2.0m in 2020. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 158% year-on-year, on average, 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 Electrovaya's growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Electrovaya is it 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Electrovaya to cover in one brief article, but the key fundamentals for the company can all be found in one place – Electrovaya's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Historical Track Record: What has Electrovaya'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 Electrovaya'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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
