NASDAQ:VTNR) future prospects. Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in the Gulf Coast and Central Midwest regions of the United States. With the latest financial year loss of US$11m and a trailing-twelve-month loss of US$25m, the US$22m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Vertex Energy’s investors mind, we’ve decided to gauge market sentiment. In this article, we will touch on the expectations for the company’s growth and when analysts expect it to become profitable.” data-reactid=”28″>With the business potentially at an important milestone, we thought we’d take a closer look at Vertex Energy, Inc.’s (NASDAQ:VTNR) future prospects. Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in the Gulf Coast and Central Midwest regions of the United States. With the latest financial year loss of US$11m and a trailing-twelve-month loss of US$25m, the US$22m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Vertex Energy’s investors mind, we’ve decided to gauge market sentiment. In this article, we will touch on the expectations for the company’s growth and when analysts expect it to become profitable.
Check out our latest analysis for Vertex Energy ” data-reactid=”29″> Check out our latest analysis for Vertex Energy
Consensus from 3 of the American Oil and Gas analysts is that Vertex Energy is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$11m in 2022. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Vertex Energy’s growth isn’t the focus of this broad overview, but, bear in mind 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’d like to point out is that The company has managed its capital prudently, 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:
Vertex Energy’s company page on Simply Wall St. We’ve also compiled a list of important factors you should further research:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on Vertex Energy, so if you are interested in understanding the company at a deeper level, take a look at Vertex Energy’s company page on Simply Wall St. We’ve also compiled a list of important factors you should further research:
- Valuation: What is Vertex 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 Vertex Energy is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Vertex Energy’s board and the CEO’s background.
- 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. 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.
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