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When Will Enteq Upstream Plc (LON:NTQ) Turn A Profit?

Enteq Upstream Plc's (LON:NTQ): Enteq Upstream Plc, together with its subsidiaries, provides reach and recovery products and technologies to the upstream oil and gas services market primarily in the United States. The company’s loss has recently broadened since it announced a -US$98.0k loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$204.0k, moving it further away from breakeven. The most pressing concern for investors is NTQ’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for NTQ’s growth and when analysts expect the company to become profitable.

Check out our latest analysis for Enteq Upstream

NTQ is bordering on breakeven, according to the 2 Energy Services analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$200k in 2021. So, NTQ is predicted to breakeven approximately a couple of months from now! How fast will NTQ have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, NTQ may become profitable much later than analysts predict.

AIM:NTQ Past and Future Earnings April 20th 2020
AIM:NTQ Past and Future Earnings April 20th 2020

Given this is a high-level overview, I won’t go into details of NTQ’s upcoming projects, but, bear in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

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Before I wrap up, there’s one aspect worth mentioning. NTQ currently has no debt on its balance sheet, which is rare for a loss-making oil and gas company, which usually has a high level of debt relative to its equity. This means that NTQ has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of NTQ to cover in one brief article, but the key fundamentals for the company can all be found in one place – NTQ’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further research:

  1. Valuation: What is NTQ 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 NTQ 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 Enteq Upstream’s board and the CEO’s back ground.

  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.

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.

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. Thank you for reading.