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When Will LanzaTech Global, Inc. (NASDAQ:LNZA) Turn A Profit?

Simply Wall St ·  Jan 26 05:16

We feel now is a pretty good time to analyse LanzaTech Global, Inc.'s (NASDAQ:LNZA) business as it appears the company may be on the cusp of a considerable accomplishment. LanzaTech Global, Inc. operates as a nature-based carbon refining company in the United States and internationally. The company's loss has recently broadened since it announced a US$115m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$151m, moving it further away from breakeven. The most pressing concern for investors is LanzaTech Global's path to profitability – when will it 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 LanzaTech Global

According to the 2 industry analysts covering LanzaTech Global, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$32m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% 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.

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NasdaqCM:LNZA Earnings Per Share Growth January 26th 2024

Underlying developments driving LanzaTech Global's growth isn't the focus of this broad overview, however, 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.

Before we wrap up, there's one aspect worth mentioning. LanzaTech Global currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of LanzaTech Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – LanzaTech Global's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

  1. Valuation: What is LanzaTech Global 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 LanzaTech Global 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 LanzaTech Global'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.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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