We feel now is a very good time to analyze Kraken Robotics Inc.’s (CVE: PNG) The business also appears that the company may be on the cusp of a major breakthrough. Kraken Robotics Inc. , a marine technology company, is engaged in the design, manufacture, and sale of sensor-focused software, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. The company’s losses have recently widened since announcing a C$3.5m loss in the full fiscal year, compared to the most recent twelve-month loss of C$4.1m, moving it far from breaking even. Since the path to profitability is a topic of concern to Kraken Robotics investors, we decided to gauge market sentiment. Below, we provide a high-level summary of the industry analysts’ expectations for the company.
The consensus of 2 Canadian electronics analysts is that Kraken Robotics is close to breakeven. They expect the company to incur a final loss in 2022, before posting a positive profit of C$4.6 million in 2023. Therefore, the company is expected to break even in just over a year from today. How fast can the company grow each year to break even by 2023? Contrary to analyst estimates, it turns out that they expect the company to grow 170% year-over-year, on average, which is rather optimistic! If the business grows at a slower rate, it will become profitable at a later date than expected.
The fundamental developments driving Kraken Robotics’ growth aren’t the focus of this broad overview, but keep in mind that a typically high growth rate isn’t out of the ordinary, especially when the company is in an investment period.
Before we wrap up, there is one issue worth mentioning. Kraken Robotics currently has a relatively high level of debt. Typically, the debt should not exceed 40% of your equity, which in the case of Kraken Robotics is 44%. A higher level of debt requires stricter capital management which increases the risk of investing in a loss-making company.
There are basic basics of Kraken Robotics that are not covered in this article, but we must stress again that this is just a basic overview. For a more comprehensive look at Kraken Robotics, have a look at Kraken Robotics company page on Simply Wall St. We have also compiled a list of relevant aspects that you should research further:
- evaluation: What is Kraken Robotics worth today? Has future growth potential already been factored into the price? The Intrinsic value infographic in our organic research report It helps visualize if Kraken Robotics is currently being mispriced by the market.
- management teamHaving an experienced management team at the helm increases our confidence in the business – take a look Kraken Robotics Board Member and CEO background.
- Other high performing stocksAre there other stocks that offer better odds with proven track records? explore Free list of these great stocks here.
Evaluation is complex, but we help make it simple.
Find out if Kraken robots potentially overvalued or undervalued by checking our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider transactions and financial soundness.
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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst predictions 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 it does not take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by fundamental data. Note that our analysis may not include the company’s most recent price-sensitive announcements or specific materials. Wall Street simply has no position in any of the stocks mentioned.
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