In This Article:
Tantalus Systems Holding Inc. (TSE:GRID) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tantalus Systems Holding Inc. operates as a smart grid technology company in Canada and the United States. The CA$76m market-cap company’s loss lessened since it announced a US$1.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.7m, as it approaches breakeven. The most pressing concern for investors is Tantalus Systems Holding'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.
See our latest analysis for Tantalus Systems Holding
Consensus from 5 of the Canadian Electronic analysts is that Tantalus Systems Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$72k in 2025. Therefore, the company is expected 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 97% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Tantalus Systems Holding's upcoming projects, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Tantalus Systems Holding is its debt-to-equity ratio of 157%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Tantalus Systems Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tantalus Systems Holding's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
-
Valuation: What is Tantalus Systems Holding 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 Tantalus Systems Holding 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 Tantalus Systems Holding’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.