Condor Energies Inc. (TSE:CDR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Condor Energies Inc., an oil and gas company, engages in the production of natural gas in Uzbekistan, Turkey, and Kazakhstan. With the latest financial year loss of CA$11m and a trailing-twelve-month loss of CA$9.8m, the CA$98m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Condor Energies 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 Condor Energies

Condor Energies is bordering on breakeven, according to some Canadian Oil and Gas analysts. They expect the company to post a final loss in 2023, before turning a profit of CA$9.4m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 135% is expected, 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.

Given this is a high-level overview, we won’t go into details of Condor Energies' upcoming projects, but, take into account that by and large energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with Condor Energies is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Condor Energies, so if you are interested in understanding the company at a deeper level, take a look at Condor Energies' company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Valuation: What is Condor Energies 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 Condor Energies 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 Condor Energies’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.