Yahoo Finance When Will Fluence Corporation Limited (ASX:FLC) Turn A Profit?
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Fluence Corporation Limited’s (ASX:FLC): Fluence Corporation Limited provides packaged water and wastewater treatment solutions in North America, the Middle East, South America, Europe, and China. The company’s loss has recently broadened since it announced a -US$23.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$64.5m, moving it further away from breakeven. As path to profitability is the topic on FLC’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for FLC’s growth and when analysts expect the company to become profitable.
View our latest analysis for Fluence
Expectation from Machinery analysts is FLC is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$9.8m in 2020. So, FLC is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which FLC must grow year-on-year. It turns out an average annual growth rate of 98% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, FLC may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for FLC given that this is a high-level summary, though, 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.
Before I wrap up, there’s one aspect worth mentioning. FLC has managed its capital judiciously, with debt making up 2.6% of equity. This means that FLC 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 FLC to cover in one brief article, but the key fundamentals for the company can all be found in one place – FLC’s company page on Simply Wall St. I’ve also put together a list of important factors you should further research:
Historical Track Record: What has FLC’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 Fluence’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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
