Breakeven On The Horizon For HydrogenPro ASA (OB:HYPRO)

We feel now is a pretty good time to analyse HydrogenPro ASA's (OB:HYPRO) business as it appears the company may be on the cusp of a considerable accomplishment. HydrogenPro ASA engages in designing and delivering hydrogen technology and systems in Norway, Europe, the United States, and the Asia Pacific. The kr561m market-cap company posted a loss in its most recent financial year of kr65m and a latest trailing-twelve-month loss of kr160m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on HydrogenPro'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 HydrogenPro

Consensus from 2 of the Norwegian Machinery analysts is that HydrogenPro is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr245m in 2026. The company is therefore projected to breakeven around 2 years from now. 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 99% 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.

We're not going to go through company-specific developments for HydrogenPro given that this is a high-level summary, but, keep in mind that generally 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. HydrogenPro currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of HydrogenPro to cover in one brief article, but the key fundamentals for the company can all be found in one place – HydrogenPro's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is HydrogenPro 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 HydrogenPro 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 HydrogenPro’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.