Yahoo Finance Loss-Making Iris Energy Limited (NASDAQ:IREN) Set To Breakeven
Iris Energy Limited (NASDAQ:IREN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Iris Energy Limited owns and operates bitcoin mining data centers. The US$1.5b market-cap company’s loss lessened since it announced a US$172m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$8.8m, as it approaches breakeven. The most pressing concern for investors is Iris Energy's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Iris Energy
Consensus from 7 of the American Software analysts is that Iris Energy is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$4.3m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 131% year-on-year, on average, 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 Iris Energy's growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Iris Energy currently has no debt on its balance sheet, which is rare for a loss-making growth 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 Iris Energy to cover in one brief article, but the key fundamentals for the company can all be found in one place – Iris Energy's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:
Valuation: What is Iris Energy 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 Iris Energy 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 Iris Energy’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.
