exactEarth Ltd’s (TSE:XCT): exactEarth Ltd. provides maritime vessel data for ship tracking and maritime situational awareness solutions worldwide. The CA$24.44m market-cap posted a loss in its most recent financial year of -CA$33.83m and a latest trailing-twelve-month loss of -CA$35.31m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on XCT’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for XCT, its year of breakeven and its implied growth rate.See our latest analysis for exactEarth
XCT is bordering on breakeven, according to Infrastructure analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of CA$0 in . Therefore, XCT is expected to breakeven roughly a couple of months from now! What rate will XCT 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 108.57%, which is extremely buoyant. If this rate turns out to be too aggressive, XCT may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for XCT given that this is a high-level summary, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. XCT has managed its capital prudently, with debt making up 2.26% of equity. This means that XCT has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on XCT, so if you are interested in understanding the company at a deeper level, take a look at XCT’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further research:
- Historical Track Record: What has XCT’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on exactEarth’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.