With the business potentially at an important milestone, we thought we'd take a closer look at Kraken Robotics Inc.'s (CVE:PNG) future prospects. Kraken Robotics Inc., a marine technology company, designs, manufactures, and sells software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. The CA$139m market-cap company posted a loss in its most recent financial year of CA$3.4m and a latest trailing-twelve-month loss of CA$2.7m shrinking the gap between loss and breakeven. As path to profitability is the topic on Kraken Robotics' investors mind, we've decided to gauge market sentiment. 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 Kraken Robotics

Consensus from 3 of the Canadian Electronic analysts is that Kraken Robotics is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of CA$6.0m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 210%, which signals high confidence from analysts. 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 Kraken Robotics' upcoming projects, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 9.5% 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:

This article is not intended to be a comprehensive analysis on Kraken Robotics, so if you are interested in understanding the company at a deeper level, take a look at Kraken Robotics' company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has Kraken Robotics' 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kraken Robotics' board and the CEO’s background.

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.

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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