Analysts Are Optimistic We'll See A Profit From Canada Computational Unlimited Corp. (CVE:SATO)
We feel now is a pretty good time to analyse Canada Computational Unlimited Corp.'s (CVE:SATO) business as it appears the company may be on the cusp of a considerable accomplishment. Canada Computational Unlimited Corp. operates bitcoin mining center with a contract of 20 MW of energy in Quebec, Canada. The CA$43m market-cap company announced a latest loss of CA$1.7m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is Canada Computational Unlimited's path to profitability – when will it breakeven? 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 Canada Computational Unlimited
Canada Computational Unlimited is bordering on breakeven, according to some Canadian Software analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of CA$1.8m in 2022. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 115% year-on-year, on average, which is extremely buoyant. 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 Canada Computational Unlimited given that this is a high-level summary, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 1.1% 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 Canada Computational Unlimited to cover in one brief article, but the key fundamentals for the company can all be found in one place – Canada Computational Unlimited's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Historical Track Record: What has Canada Computational Unlimited'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 Canada Computational Unlimited'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.
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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.
