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Aqua Metals, Inc.'s (NASDAQ:AQMS): Aqua Metals, Inc. engages in the recycling of lead primarily in the United States. The US$112m market-cap company announced a latest loss of -US$40.3m on 31 December 2018 for its most recent financial year result. The most pressing concern for investors is AQMS’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for AQMS’s growth and when analysts expect the company to become profitable.
AQMS is bordering on breakeven, according to the 3 Commercial Services analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$606k in 2020. Therefore, AQMS is expected to breakeven roughly a couple of months from now! What rate will AQMS have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 100%, which is rather optimistic! If this rate turns out to be too aggressive, AQMS may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of AQMS’s upcoming projects, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. AQMS has managed its capital prudently, with debt making up 26% of equity. This means that AQMS has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of AQMS to cover in one brief article, but the key fundamentals for the company can all be found in one place – AQMS’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further examine:
- Valuation: What is AQMS 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 AQMS 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 Aqua Metals’s board and the CEO’s back ground.
- 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.