Tantalus Systems Holding Inc.'s (TSE:GRID) Profit Outlook
Tantalus Systems Holding Inc. (TSE:GRID) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tantalus Systems Holding Inc. operates as a smart grid technology company in North America and the Caribbean Basin. On 31 December 2023, the CA$72m market-cap company posted a loss of US$1.7m for its most recent financial year. As path to profitability is the topic on Tantalus Systems Holding's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Tantalus Systems Holding
Consensus from 3 of the Canadian Electronic analysts is that Tantalus Systems Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$569k in 2025. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 76% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Tantalus Systems Holding's growth isn’t the focus of this broad overview, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Tantalus Systems Holding currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Tantalus Systems Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tantalus Systems Holding's company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Valuation: What is Tantalus Systems Holding 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 Tantalus Systems Holding 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 Tantalus Systems Holding’s board and the CEO’s background.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
