CleanSpark, Inc.'s (NASDAQ:CLSK): CleanSpark, Inc. provides energy software and control technology in the United States. The US$5.3m market-cap company’s loss lessens since it announced a -US$26.1m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$25.7m, as it approaches breakeven. Many investors are wondering the rate at which CLSK will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for CLSK’s growth and when analysts expect the company to become profitable.
Expectation from Software analysts is CLSK is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$6.3m in 2023. So, CLSK is predicted to breakeven approximately 3 years from today. What rate will CLSK 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 65%, which is extremely buoyant. If this rate turns out to be too aggressive, CLSK may become profitable much later than analysts predict.
Underlying developments driving CLSK’s growth isn’t the focus of this broad overview, however, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that CLSK has managed its capital judiciously, with debt making up 26% of equity. This means that CLSK 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 CLSK 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 CLSK, take a look at CLSK’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further research:
- Valuation: What is CLSK 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 CLSK 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 CleanSpark’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.
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