Kalray S.A. (EPA:ALKAL): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Kalray S.A.'s (EPA:ALKAL) future prospects. Kalray S.A. provides processors and acceleration cards in France. The €135m market-cap company announced a latest loss of €12m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Kalray'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 Kalray

According to the 3 industry analysts covering Kalray, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of €8.0m in 2025. So, the company is predicted to breakeven just over a year from today. 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 92% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Kalray given that this is a high-level summary, though, 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 34% 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 key fundamentals of Kalray which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Kalray, take a look at Kalray's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Historical Track Record: What has Kalray'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 Kalray'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.