We feel now is a pretty good time to analyse enCore Energy Corp.'s (CVE:EU) business as it appears the company may be on the cusp of a considerable accomplishment. enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. The CA$867m market-cap company posted a loss in its most recent financial year of US$22m and a latest trailing-twelve-month loss of US$21m shrinking the gap between loss and breakeven. The most pressing concern for investors is enCore Energy's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for enCore Energy

enCore Energy is bordering on breakeven, according to the 4 Canadian Oil and Gas analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$49m in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which is rather optimistic! 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, but, keep in mind that generally 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 The company has managed its capital judiciously, with debt making up 5.3% 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 compiled a list of key factors you should further research:

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.