Cloudberry Clean Energy AS' (OB:CLOUD) About To Shift From Loss To Profit

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 kr1.5b market-cap company announced a latest loss of kr34m on 31 December 2020 for its most recent financial year result. As path to profitability is the topic on Cloudberry Clean Energy's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out 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 expect the company to post a final loss in 2020, before turning a profit of kr95m in 2021. Therefore, the company is expected to breakeven roughly a year 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 73%, which is extremely buoyant. 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 Cloudberry Clean Energy given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 25% 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 too many aspects of Cloudberry Clean Energy to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cloudberry Clean Energy's company page on Simply Wall St. We've also compiled a list of important 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.

If you decide to trade Cloudberry Clean Energy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all 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.