Analysts Expect Kraken Robotics Inc. (CVE:PNG) To Breakeven Soon

Kraken Robotics Inc. (CVE:PNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kraken Robotics Inc., a marine technology company, designs, manufactures, and sells software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. With the latest financial year loss of CA$5.5m and a trailing-twelve-month loss of CA$7.6m, the CA$89m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Kraken Robotics' 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.

Check out our latest analysis for Kraken Robotics

Consensus from 2 of the Canadian Electronic analysts is that Kraken Robotics is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of CA$474k in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 176%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

We're not going to go through company-specific developments for Kraken Robotics given that this is a high-level summary, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 11% 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 key fundamentals of Kraken Robotics 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 Kraken Robotics, take a look at Kraken Robotics' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Kraken Robotics 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 Kraken Robotics is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kraken Robotics’s board and the CEO’s background.

3. 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. 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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