Tantalus Systems Holding Inc. (TSE:GRID): Is Breakeven Near?

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 Canada and the United States. The CA$79m market-cap company posted a loss in its most recent financial year of US$1.7m and a latest trailing-twelve-month loss of US$1.7m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Tantalus Systems Holding will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Tantalus Systems Holding

Tantalus Systems Holding is bordering on breakeven, according to the 5 Canadian Electronic analysts. They expect the company to post a final loss in 2024, before turning a profit of US$72k in 2025. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 97% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Tantalus Systems Holding's growth isn’t the focus of this broad overview, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Tantalus Systems Holding is its debt-to-equity ratio of 157%. 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 in 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 key factors you should further examine:

1. 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.
2. 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.
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.