Hunter Group ASA (OB:HUNT): Are Analysts Optimistic?

Hunter Group ASA’s (OB:HUNT): Hunter Group ASA, an investment company, focuses primarily on oil services technology investments. The øre717.43m market-cap posted a loss in its most recent financial year of -øre96.33m and a latest trailing-twelve-month loss of -øre132.87m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is HUNT’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for HUNT.

View out our latest analysis for Hunter Group

Expectation from Energy Services analysts is HUNT is on the verge of breakeven. They expect the company to post a final loss in 2018, before turning a profit of øre12.00m in 2019. So, HUNT is predicted to breakeven approximately a couple of months from now! How fast will HUNT have to grow each year in order to reach the breakeven point by 2019? Working backwards from analyst estimates, it turns out that they expect the company to grow 85.80% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, HUNT may become profitable much later than analysts predict.

OB:HUNT Past Future Earnings June 19th 18
OB:HUNT Past Future Earnings June 19th 18

Given this is a high-level overview, I won’t go into details of HUNT’s upcoming projects, though, keep in mind that by and large oil and gas companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before I wrap up, there’s one aspect worth mentioning. HUNT has managed its capital judiciously, with debt making up 6.77% of equity. This means that HUNT 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 HUNT, so if you are interested in understanding the company at a deeper level, take a look at HUNT’s company page on Simply Wall St. I’ve also put together a list of key factors you should look at:

  1. Historical Track Record: What has HUNT’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.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hunter Group’s board and the CEO’s back ground.
  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.