Corre Energy B.V. (ISE:CORRE) Is About To Turn The Corner

We feel now is a pretty good time to analyse Corre Energy B.V.'s (ISE:CORRE) business as it appears the company may be on the cusp of a considerable accomplishment. Corre Energy B.V. engages in the development and operation of long duration energy storage (LDES) projects and products in Europe. The €54m market-cap company’s loss lessened since it announced a €30m loss in the full financial year, compared to the latest trailing-twelve-month loss of €24m, as it approaches breakeven. Many investors are wondering about the rate at which Corre Energy B.V will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Corre Energy B.V

Corre Energy B.V is bordering on breakeven, according to the 3 Irish Oil and Gas analysts. They expect the company to post a final loss in 2023, before turning a profit of €814k in 2024. Therefore, the company is expected to breakeven roughly a year 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 45% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Corre Energy B.V's upcoming projects, but, bear in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, 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 Corre Energy B.V is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Corre Energy B.V, so if you are interested in understanding the company at a deeper level, take a look at Corre Energy B.V's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Corre Energy B.V 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 Corre Energy B.V 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 Corre Energy B.V’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.