Crown ElectroKinetics Corp. (NASDAQ:CRKN) Is Expected To Breakeven In The Near Future

·3 min read

We feel now is a pretty good time to analyse Crown ElectroKinetics Corp.'s (NASDAQ:CRKN) business as it appears the company may be on the cusp of a considerable accomplishment. Crown Electrokinetics Corp. develops and sells optical switching films. The US$13m market-cap company posted a loss in its most recent financial year of US$22m and a latest trailing-twelve-month loss of US$5.9m shrinking the gap between loss and breakeven. As path to profitability is the topic on Crown ElectroKinetics' 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.

View our latest analysis for Crown ElectroKinetics

According to some industry analysts covering Crown ElectroKinetics, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$19m in 2024. So, the company is predicted to breakeven approximately 2 years 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 88% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Underlying developments driving Crown ElectroKinetics' growth isn’t the focus of this broad overview, however, keep in mind that by and large 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 prudently, with debt making up 0.1% 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:

This article is not intended to be a comprehensive analysis on Crown ElectroKinetics, so if you are interested in understanding the company at a deeper level, take a look at Crown ElectroKinetics' company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

  1. Historical Track Record: What has Crown ElectroKinetics' 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 Crown ElectroKinetics' 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.

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