Yahoo Finance Kibo Energy PLC (LON:KIBO) Is About To Turn The Corner
We feel now is a pretty good time to analyse Kibo Energy PLC's (LON:KIBO) business as it appears the company may be on the cusp of a considerable accomplishment. Kibo Energy PLC, together with its subsidiaries, explores for and develops energy projects in Sub Saharan Africa and the United Kingdom. With the latest financial year loss of UK£4.7m and a trailing-twelve-month loss of UK£4.3m, the UK£5.4m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Kibo Energy will turn a profit, with the big question being “when will the company breakeven?” 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 Kibo Energy
According to some industry analysts covering Kibo Energy, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of UK£1.9m in 2021. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 92% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Kibo Energy given that this is a high-level summary, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 1.6% 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 Kibo Energy 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 Kibo Energy, take a look at Kibo Energy's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
Valuation: What is Kibo Energy 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 Kibo Energy is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kibo Energy’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. 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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