Drone Delivery Canada Corp. (CVE:FLT) About To Shift From Loss To Profit

Drone Delivery Canada Corp. (CVE:FLT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Drone Delivery Canada Corp. designs, develops, and implements a commercial drone-based logistics platform in Canada and internationally. The CA$53m market-cap company’s loss lessened since it announced a CA$13m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$9.9m, as it approaches breakeven. The most pressing concern for investors is Drone Delivery Canada'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.

See our latest analysis for Drone Delivery Canada

Expectations from some of the Canadian Aerospace & Defense analysts is that Drone Delivery Canada is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of CA$1.5b in 2024. Therefore, the company is expected to breakeven roughly a year 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 46%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Drone Delivery Canada's growth isn’t the focus of this broad overview, though, 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.

One thing we’d like to point out is that Drone Delivery Canada has no debt on its balance sheet, which is rare for a loss-making 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:

This article is not intended to be a comprehensive analysis on Drone Delivery Canada, so if you are interested in understanding the company at a deeper level, take a look at Drone Delivery Canada's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Historical Track Record: What has Drone Delivery Canada'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 Drone Delivery Canada'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.