Endúr ASA (OB:ENDUR) Could Be Less Than A Year Away From Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at Endúr ASA's (OB:ENDUR) future prospects. Endúr ASA engages in the aquaculture, maritime, and energy businesses in Norway and internationally. The kr681m market-cap company posted a loss in its most recent financial year of kr9.6m and a latest trailing-twelve-month loss of kr38m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Endúr 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.

Check out our latest analysis for Endúr

According to some industry analysts covering Endúr, breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr36m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 113% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Endúr's upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 25% 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:

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

1. Valuation: What is Endúr 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 Endúr 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 Endúr’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. 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.
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