Fission Uranium Corp. (TSE:FCU) Is Expected To Breakeven In The Near Future

Fission Uranium Corp. (TSE:FCU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Fission Uranium Corp. engages in the acquisition, exploration, and development of uranium resource properties in Canada. The company’s loss has recently broadened since it announced a CA$6.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$10m, moving it further away from breakeven. Many investors are wondering about the rate at which Fission Uranium will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out the opportunities and risks within the CA Oil and Gas industry.

Fission Uranium is bordering on breakeven, according to the 2 Canadian Oil and Gas analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$3.0m in 2024. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 59% 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.

Given this is a high-level overview, we won’t go into details of Fission Uranium's upcoming projects, but, keep in mind that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. Fission Uranium currently has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Fission Uranium to cover in one brief article, but the key fundamentals for the company can all be found in one place – Fission Uranium's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Historical Track Record: What has Fission Uranium'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 Fission Uranium'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.

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

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.