We feel now is a pretty good time to analyse Energy Fuels Inc.'s (TSE:EFR) business as it appears the company may be on the cusp of a considerable accomplishment. Energy Fuels Inc., together with its subsidiaries, engages in the extraction, recovery, exploration, and sale of conventional and in situ uranium recovery in the United States. With the latest financial year loss of US$28m and a trailing-twelve-month loss of US$35m, the CA$1.3b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Energy Fuels will turn a profit, with the big question being “when will the company 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 Energy Fuels

Energy Fuels is bordering on breakeven, according to the 3 Canadian Oil and Gas analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$3.6m in 2022. 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 129%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Energy Fuels' upcoming projects, but, bear in mind that typically an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. So, 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 Energy Fuels has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas 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 Energy Fuels, so if you are interested in understanding the company at a deeper level, take a look at Energy Fuels' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

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