Yahoo Finance Advanced Emissions Solutions, Inc.'s (NASDAQ:ADES) Path To Profitability
We feel now is a pretty good time to analyse Advanced Emissions Solutions, Inc.'s (NASDAQ:ADES) business as it appears the company may be on the cusp of a considerable accomplishment. Advanced Emissions Solutions, Inc. provides solutions for the coal-fired power generation, industrial, water treatment plants, and other markets. The company’s loss has recently broadened since it announced a US$116m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$163m, moving it further away from breakeven. Many investors are wondering about the rate at which Advanced Emissions Solutions will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Advanced Emissions Solutions
According to some industry analysts covering Advanced Emissions Solutions, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.0m in 2024. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is extremely buoyant. 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 Advanced Emissions Solutions' upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Advanced Emissions Solutions currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Advanced Emissions Solutions, so if you are interested in understanding the company at a deeper level, take a look at Advanced Emissions Solutions' company page on Simply Wall St. We've also put together a list of key factors you should look at:
Historical Track Record: What has Advanced Emissions Solutions' 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 Advanced Emissions Solutions' 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.
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