Yahoo Finance Analysts Expect Breakeven For Eve & Co Incorporated (CVE:EVE)
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
Eve & Co Incorporated's (CVE:EVE): Eve & Co Incorporated, through its subsidiary, Natural MedCo Ltd., produces and sells dried cannabis, cannabis plants, and cannabis seeds in Canada. The CA$134m market-cap company announced a latest loss of -CA$9.1m on 31 October 2018 for its most recent financial year result. As path to profitability is the topic on EVE’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for EVE.
See our latest analysis for Eve & Co
Consensus from the 2 Personal Products analysts is EVE is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of CA$25m in 2020. Therefore, EVE is expected to breakeven roughly a few months from now. What rate will EVE have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 45%, which is rather optimistic! 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, I won’t go into details of EVE’s upcoming projects, though, 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 I’d like to point out is that EVE has managed its capital judiciously, with debt making up 30% of equity. This means that EVE 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:
There are too many aspects of EVE to cover in one brief article, but the key fundamentals for the company can all be found in one place – EVE’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should further research:
Valuation: What is EVE 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 EVE 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 Eve & Co’s board and the CEO’s back ground.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
