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Analysts Are Optimistic We'll See A Profit From Kraken Robotics Inc. (CVE:PNG)

Kraken Robotics Inc. (CVE:PNG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kraken Robotics Inc., a marine technology company, engages in the design, manufacture, and sale of software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. With the latest financial year loss of CA$3.5m and a trailing-twelve-month loss of CA$2.4m, the CA$129m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Kraken Robotics' path to profitability – when will it breakeven? 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

Kraken Robotics is bordering on breakeven, according to the 2 Canadian Electronic analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of CA$6.3m in 2023. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 191% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Kraken Robotics' growth isn’t the focus of this broad overview, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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One thing we would like to bring into light with Kraken Robotics is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Kraken Robotics' case is 48%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Kraken Robotics 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 Kraken Robotics, take a look at Kraken Robotics' company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

  1. Valuation: What is Kraken Robotics 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 Kraken Robotics is currently mispriced by the market.

  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’s 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.

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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