Analysts Are Optimistic We'll See A Profit From EverGen Infrastructure Corp. (CVE:EVGN)

We feel now is a pretty good time to analyse EverGen Infrastructure Corp.'s (CVE:EVGN) business as it appears the company may be on the cusp of a considerable accomplishment. EverGen Infrastructure Corp. acquires, develops, builds, owns, and operates a portfolio of renewable natural gas, waste to energy, and related infrastructure projects in Canada. The company’s loss has recently broadened since it announced a CA$4.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$4.3m, moving it further away from breakeven. As path to profitability is the topic on EverGen Infrastructure's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for EverGen Infrastructure

Expectations from some of the Canadian Gas Utilities analysts is that EverGen Infrastructure is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$165k in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 119% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving EverGen Infrastructure's growth isn’t the focus of this broad overview, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 26% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of EverGen Infrastructure to cover in one brief article, but the key fundamentals for the company can all be found in one place – EverGen Infrastructure'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 EverGen Infrastructure'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 EverGen Infrastructure'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.

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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.