HydrogenPro ASA (OB:HYPRO) 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 HydrogenPro ASA's (OB:HYPRO) future prospects. HydrogenPro ASA engages in designing and delivering green hydrogen technology and systems in Norway, Europe, the United States, and the Asia Pacific. The kr221m market-cap company posted a loss in its most recent financial year of kr196m and a latest trailing-twelve-month loss of kr229m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which HydrogenPro will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Expectations from some of the Norwegian Machinery analysts is that HydrogenPro is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of kr69m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 155% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for HydrogenPro given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for HydrogenPro

Before we wrap up, there’s one aspect worth mentioning. HydrogenPro currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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:

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

1. Historical Track Record: What has HydrogenPro'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 HydrogenPro'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.