Yahoo Finance When Will Paladin Energy Ltd (ASX:PDN) Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Paladin Energy Ltd's (ASX:PDN) future prospects. Paladin Energy Limited develops, explores for, and operates uranium mines in Australia, Canada, and Africa. The AU$2.4b market-cap company announced a latest loss of US$27m on 30 June 2022 for its most recent financial year result. Many investors are wondering about the rate at which Paladin Energy will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Paladin Energy
Consensus from 5 of the Australian Oil and Gas analysts is that Paladin Energy is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$62m in 2024. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 103% 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.
We're not going to go through company-specific developments for Paladin Energy given that this is a high-level summary, however, bear in mind that generally energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, 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 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 key fundamentals of Paladin 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 Paladin Energy, take a look at Paladin Energy's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Valuation: What is Paladin 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 Paladin 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 Paladin 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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