Yahoo Finance Eve & Co Incorporated's (CVE:EVE) Profit Outlook
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$23m market-cap company announced a latest loss of -CA$6.6m on 31 December 2018 for its most recent financial year result. Many investors are wondering the rate at which EVE will turn a profit, with the big question being “when will the company breakeven?” 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$3.7m in 2020. So, EVE is predicted to breakeven approximately a couple of 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 99%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving EVE’s growth isn’t the focus of this broad overview, 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.
One thing I’d like to point out is that EVE has managed its capital prudently, with debt making up 28% 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 key fundamentals of EVE which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at EVE, take a look at EVE’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further examine:
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.
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.
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