With the business potentially at an important milestone, we thought we'd take a closer look at Crown ElectroKinetics Corp.'s (NASDAQ:CRKN) future prospects. Crown Electrokinetics Corp. focuses on commercializing electrokinetic technology for use in the smart glass market. The company’s loss has recently broadened since it announced a US$9.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$22m, moving it further away from breakeven. Many investors are wondering about the rate at which Crown ElectroKinetics will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Expectations from some of the American Chemicals analysts is that Crown ElectroKinetics is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$22m in 2023. Therefore, the company is expected to breakeven roughly 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 92%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Crown ElectroKinetics given that this is a high-level summary, however, 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 would like to bring into light with Crown ElectroKinetics is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
There are key fundamentals of Crown ElectroKinetics 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 Crown ElectroKinetics, take a look at Crown ElectroKinetics' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Historical Track Record: What has Crown ElectroKinetics' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Crown ElectroKinetics' 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.
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. 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.
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