enCore Energy Corp. (CVE:EU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. With the latest financial year loss of US$17m and a trailing-twelve-month loss of US$11m, the CA$1.0b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is enCore Energy's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for enCore Energy

Consensus from 3 of the Canadian Oil and Gas analysts is that enCore Energy is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$21m in 2024. Therefore, the company is expected to breakeven roughly 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 83%, which signals high confidence from analysts. 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 enCore Energy given that this is a high-level summary, however, take into account that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 15% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is enCore Energy 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 enCore Energy 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 enCore Energy’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.