Loop Industries, Inc. (NASDAQ:LOOP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. With the latest financial year loss of US$21m and a trailing-twelve-month loss of US$27m, the US$56m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Loop Industries will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Loop Industries
Consensus from 3 of the American Chemicals analysts is that Loop Industries is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$19m in 2027. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Loop Industries' upcoming projects, however, keep in mind that typically 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 issue worth mentioning. Loop Industries currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are too many aspects of Loop Industries to cover in one brief article, but the key fundamentals for the company can all be found in one place – Loop Industries' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
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