ENVIONEER Co.,Ltd. (KOSDAQ:317870) Could Be Less Than A Year Away From Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at ENVIONEER Co.,Ltd.'s (KOSDAQ:317870) future prospects. ENVIONEER Co.,Ltd. offers high-tech composite materials for environmental industry. The ₩85b market-cap company posted a loss in its most recent financial year of ₩1.7b and a latest trailing-twelve-month loss of ₩2.5b leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ENVIONEERLtd's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering ENVIONEERLtd, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of ₩3.5b in 2026. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 126%, 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 ENVIONEERLtd's growth isn’t the focus of this broad overview, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for ENVIONEERLtd

Before we wrap up, there’s one issue worth mentioning. ENVIONEERLtd currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ENVIONEERLtd's case is 59%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on ENVIONEERLtd, so if you are interested in understanding the company at a deeper level, take a look at ENVIONEERLtd's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is ENVIONEERLtd 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 ENVIONEERLtd 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 ENVIONEERLtd’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.

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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.