Analysts Expect Itron, Inc. (NASDAQ:ITRI) To Breakeven Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Itron, Inc.'s (NASDAQ:ITRI) future prospects. Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. The US$3.0b market-cap company posted a loss in its most recent financial year of US$9.7m and a latest trailing-twelve-month loss of US$22m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Itron's 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.
See our latest analysis for Itron
According to the 9 industry analysts covering Itron, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$15m in 2023. Therefore, the company is expected to breakeven roughly 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 99% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Itron's upcoming projects, though, take into account 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 38% 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 too many aspects of Itron to cover in one brief article, but the key fundamentals for the company can all be found in one place – Itron's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Itron 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 Itron 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 Itron’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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
