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We feel now is a pretty good time to analyse NanoXplore Inc.'s (TSE:GRA) business as it appears the company may be on the cusp of a considerable accomplishment. NanoXplore Inc., a graphene company, manufactures and supplies graphene powder for use in industrial markets in Australia. The CA$377m market-cap company’s loss lessened since it announced a CA$12m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$11m, as it approaches breakeven. The most pressing concern for investors is NanoXplore's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for NanoXplore
NanoXplore is bordering on breakeven, according to the 8 Canadian Chemicals analysts. They expect the company to post a final loss in 2025, before turning a profit of CA$3.5m in 2026. The company is therefore projected to breakeven around 2 years from today. 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 78%, 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 NanoXplore's upcoming projects, though, keep in mind that generally 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. The company has managed its capital judiciously, with debt making up 6.8% 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 NanoXplore 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 NanoXplore, take a look at NanoXplore's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
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Valuation: What is NanoXplore 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 NanoXplore 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 NanoXplore’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.