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Carbonxt Group Limited's (ASX:CG1): Carbonxt Group Limited engages in the development and sale of specialized activated carbon (AC) products for the removal of pollutants and toxins in industrial processes principally in the United States. The company’s loss has recently broadened since it announced a -AU$7.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of -AU$9.1m, moving it further away from breakeven. As path to profitability is the topic on CG1’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for CG1.

See our latest analysis for Carbonxt Group

Expectation from Chemicals analysts is CG1 is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of AU$3.6m in 2020. CG1 is therefore projected to breakeven around a few months from now. What rate will CG1 have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of -10%,

Given this is a high-level overview, I won’t go into details of CG1’s upcoming projects, however, take into account that by and large periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one issue worth mentioning. CG1 currently has a debt-to-equity ratio of 121%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in CG1’s case, it has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of CG1 to cover in one brief article, but the key fundamentals for the company can all be found in one place – CG1’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further examine:

1. Valuation: What is CG1 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 CG1 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 Carbonxt Group’s board and the CEO’s back ground.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.