CAP-XX Limited's (LON:CPX): CAP-XX Limited, together with its subsidiaries, develops, manufactures, and sells supercapacitors primarily in the Asia Pacific, Europe, and North America. With the latest financial year loss of -AU$2.6m and a trailing-twelve month of -AU$2.6m, the UK£15m market-cap alleviates its loss by moving closer towards its target of breakeven. The most pressing concern for investors is CPX’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for CPX.
CPX is bordering on breakeven, according to Electronic analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of AU$100k in 2020. Therefore, CPX is expected to breakeven roughly a couple of months from now! How fast will CPX 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 112% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, CPX may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of CPX’s upcoming projects, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. CPX currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. CPX currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of CPX to cover in one brief article, but the key fundamentals for the company can all be found in one place – CPX’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further examine:
- Valuation: What is CPX 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 CPX 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 CAP-XX’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 firstname.lastname@example.org. 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.