Analysts Expect Breakeven For Cloudberry Clean Energy AS (OB:CLOUD) Before Long

Cloudberry Clean Energy AS (OB:CLOUD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cloudberry Clean Energy AS operates as a renewable energy company. The kr1.4b market-cap company posted a loss in its most recent financial year of kr2.6m and a latest trailing-twelve-month loss of kr13m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Cloudberry Clean Energy'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.

See our latest analysis for Cloudberry Clean Energy

According to the 2 industry analysts covering Cloudberry Clean Energy, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of kr54m in 2021. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 52%, 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 Cloudberry Clean Energy's growth isn’t the focus of this broad overview, 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. The company has managed its capital prudently, with debt making up 7.5% 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:

There are key fundamentals of Cloudberry Clean Energy which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Cloudberry Clean Energy, take a look at Cloudberry Clean Energy's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Cloudberry Clean Energy 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 Cloudberry Clean Energy 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 Cloudberry Clean Energy’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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