Aqua Metals, Inc. (NASDAQ:AQMS) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Aqua Metals, Inc.'s (NASDAQ:AQMS) business as it appears the company may be on the cusp of a considerable accomplishment. Aqua Metals, Inc. engages in reinventing metals recycling with its patented AquaRefining technology. With the latest financial year loss of US$15m and a trailing-twelve-month loss of US$18m, the US$53m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Aqua Metals' 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.
Check out our latest analysis for Aqua Metals
According to the 2 industry analysts covering Aqua Metals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$6.9m in 2026. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 52% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Aqua Metals' upcoming projects, but, take into account that typically 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 judiciously, with debt making up 8.3% 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:
This article is not intended to be a comprehensive analysis on Aqua Metals, so if you are interested in understanding the company at a deeper level, take a look at Aqua Metals' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Historical Track Record: What has Aqua Metals' 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 Aqua Metals' 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.
