We feel now is a pretty good time to analyse CleanSpark, Inc.'s (NASDAQ:CLSK) business as it appears the company may be on the cusp of a considerable accomplishment. CleanSpark, Inc. provides energy software and control technology solutions worldwide. With the latest financial year loss of US$23m and a trailing-twelve-month loss of US$29m, the US$703m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which CleanSpark will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
CleanSpark is bordering on breakeven, according to the 2 American Software analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$5.3m in 2021. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 46% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving CleanSpark's growth isn’t the focus of this broad overview, though, keep in mind 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 0.7% 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.
There are too many aspects of CleanSpark to cover in one brief article, but the key fundamentals for the company can all be found in one place – CleanSpark's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
- Valuation: What is CleanSpark 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 CleanSpark is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CleanSpark’s board and the CEO’s background.
- 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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