Mission Ready Solutions Inc. (CVE:MRS) On The Verge Of Breaking Even

Mission Ready Solutions Inc. (CVE:MRS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mission Ready Solutions Inc. provides personal protective solutions to the global defense, security, and first-responder markets in Canada and the United States. With the latest financial year loss of CA$744k and a trailing-twelve-month loss of CA$5.7m, the CA$17m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Mission Ready Solutions' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Mission Ready Solutions

Expectations from some of the Canadian Aerospace & Defense analysts is that Mission Ready Solutions is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of CA$1.4m in 2022. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 180% year-on-year, on average, 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 Mission Ready Solutions' growth isn’t the focus of this broad overview, but, bear 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 would like to bring into light with Mission Ready Solutions is its debt-to-equity ratio of 115%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Mission Ready Solutions to cover in one brief article, but the key fundamentals for the company can all be found in one place – Mission Ready Solutions' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Historical Track Record: What has Mission Ready Solutions' 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 Mission Ready Solutions' 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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