Loss-Making HydrogenPro AS (OB:HYPRO) Set To Breakeven

With the business potentially at an important milestone, we thought we'd take a closer look at HydrogenPro AS' (OB:HYPRO) future prospects. HydrogenPro AS designs and supplies customized hydrogen plants for industrial clients. On 31 December 2020, the kr2.5b market-cap company posted a loss of kr16m for its most recent financial year. The most pressing concern for investors is HydrogenPro's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for HydrogenPro

HydrogenPro is bordering on breakeven, according to the 2 Norwegian Machinery analysts. They expect the company to post a final loss in 2020, before turning a profit of kr10m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 82%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving HydrogenPro's growth isn’t the focus of this broad overview, however, 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.

One thing we’d like to point out is that HydrogenPro has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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:

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

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.

When trading HydrogenPro or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.