Nanoco Group plc’s (LON:NANO): Nanoco Group plc, together with its subsidiaries, engages in the research, development, licensing, and manufacture of cadmium and heavy-metal-free quantum dots, and semiconductor nanoparticles for use in various commercial applications. The UK£121.81m market-cap company’s loss lessens since it announced a -UK£9.11m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -UK£7.89m, as it approaches breakeven. Many investors are wondering the rate at which NANO will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for NANO.
Check out our latest analysis for Nanoco Group
NANO is bordering on breakeven, according to Semiconductor analysts.
They expect the company to post a final loss in -1, before turning a profit of UK£0 in .
NANO is therefore projected to breakeven around
a few months from now.
How fast will NANO have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 35.85% year-on-year, on average,
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 NANO’s growth isn’t the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that NANO has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. This means that NANO has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on NANO, so if you are interested in understanding the company at a deeper level, take a look at NANO’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should further examine:
- Historical Track Record: What has NANO’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 Nanoco Group’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.