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When Will CleanSpark, Inc. (NASDAQ:CLSK) Breakeven?

Simply Wall St
·3 min read

CleanSpark, Inc. (NASDAQ:CLSK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CleanSpark, Inc. provides energy software and control technology in the United States. The company’s loss has recently broadened since it announced a US$26m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$28m, moving it further away from breakeven. Many investors are wondering about the rate at which CleanSpark will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for CleanSpark

According to some industry analysts covering CleanSpark, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$2.1m in 2022. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% 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.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving CleanSpark's growth isn’t the focus of this broad overview, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 3.7% 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 key fundamentals of CleanSpark which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CleanSpark, take a look at CleanSpark's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

  1. Historical Track Record: What has CleanSpark'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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CleanSpark's board and the CEO’s background.

  3. 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.