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Fission Uranium Corp.'s (TSE:FCU) Shift From Loss To Profit

Fission Uranium Corp. (TSE:FCU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Fission Uranium Corp. engages in the acquisition, exploration, and development of uranium resource properties in Canada. On 31 December 2023, the CA$868m market-cap company posted a loss of CA$8.9m for its most recent financial year. As path to profitability is the topic on Fission Uranium's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Fission Uranium

According to the 4 industry analysts covering Fission Uranium, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CA$5.3m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow -34% year-on-year, on average,

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

Underlying developments driving Fission Uranium's growth isn’t the focus of this broad overview, but, keep in mind that by and large energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

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One thing we’d like to point out is that Fission Uranium has no debt on its balance sheet, which is rare for a loss-making oil and gas company, which typically has high debt relative to its equity. This means that the company 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 Fission Uranium to cover in one brief article, but the key fundamentals for the company can all be found in one place – Fission Uranium's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

  1. Historical Track Record: What has Fission Uranium'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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Fission Uranium'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.