Analysts Expect Breakeven For Bergen Carbon Solutions AS (OB:BCS) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Bergen Carbon Solutions AS' (OB:BCS) future prospects. Bergen Carbon Solutions AS develops, manufactures, and sells nanofibers, nanotubes, and graphite using carbon dioxide and hydropower. The kr227m market-cap company posted a loss in its most recent financial year of kr65m and a latest trailing-twelve-month loss of kr66m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Bergen Carbon Solutions' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Bergen Carbon Solutions

Bergen Carbon Solutions is bordering on breakeven, according to some Norwegian Chemicals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of kr51m in 2025. The company is therefore projected to breakeven just over a year from today. 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 51% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Bergen Carbon Solutions given that this is a high-level summary, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Bergen Carbon Solutions currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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:

There are too many aspects of Bergen Carbon Solutions to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bergen Carbon Solutions' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is Bergen Carbon Solutions 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 Bergen Carbon Solutions 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 Bergen Carbon Solutions’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.

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