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With the business potentially at an important milestone, we thought we'd take a closer look at EverGen Infrastructure Corp.'s (CVE:EVGN) future prospects. EverGen Infrastructure Corp. acquires, develops, builds, owns, and operates a portfolio of renewable natural gas (RNG), waste to energy, and related infrastructure projects in Canada and North America. The CA$24m market-cap company’s loss lessened since it announced a CA$4.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$4.1m, as it approaches breakeven. The most pressing concern for investors is EverGen Infrastructure's 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.
View our latest analysis for EverGen Infrastructure
According to the 2 industry analysts covering EverGen Infrastructure, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CA$550k in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of EverGen Infrastructure's upcoming projects, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 34% 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:
This article is not intended to be a comprehensive analysis on EverGen Infrastructure, so if you are interested in understanding the company at a deeper level, take a look at EverGen Infrastructure's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
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Valuation: What is EverGen Infrastructure 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 EverGen Infrastructure is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EverGen Infrastructure’s board and the CEO’s background.
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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.