Aqua Metals Inc’s (NASDAQ:AQMS): Aqua Metals, Inc. engages in the recycling of lead primarily in the United States. The company’s loss has recently broadened since it announced a -US$27m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$31m, moving it further away from breakeven. As path to profitability is the topic on AQMS’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for AQMS, its year of breakeven and its implied growth rate.
AQMS is bordering on breakeven, according to Commercial Services analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$2m in 2020. AQMS is therefore projected to breakeven around a couple of months from now! How fast will AQMS have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, AQMS may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for AQMS given that this is a high-level summary, however, keep in mind that generally 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 16% 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 key fundamentals of AQMS which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at AQMS, take a look at AQMS’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further research:
- 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.