Yahoo Finance Arq, Inc. (NASDAQ:ARQ): Is Breakeven Near?
We feel now is a pretty good time to analyse Arq, Inc.'s (NASDAQ:ARQ) business as it appears the company may be on the cusp of a considerable accomplishment. Arq, Inc. produces activated carbon products in North America. The US$224m market-cap company announced a latest loss of US$12m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Arq 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.
See our latest analysis for Arq
Expectations from some of the American Chemicals analysts is that Arq is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$5.5m in 2025. So, the company is predicted to breakeven just over a year from now. 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 78% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Arq's growth isn’t the focus of this broad overview, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 9.8% 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:
There are too many aspects of Arq to cover in one brief article, but the key fundamentals for the company can all be found in one place – Arq's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:
Historical Track Record: What has Arq's 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 Arq's 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.
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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.
