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With the business potentially at an important milestone, we thought we'd take a closer look at Condor Energies Inc.'s (TSE:CDR) future prospects. Condor Energies Inc., an oil and gas company, engages in the production of natural gas in Uzbekistan, Turkey, and Kazakhstan. The CA$125m market-cap company’s loss lessened since it announced a CA$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$8.4m, as it approaches breakeven. As path to profitability is the topic on Condor Energies' investors mind, we've decided to gauge market sentiment. 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 anticipate the company to incur a final loss in 2024, before generating positive profits of CA$16m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 146% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Condor Energies given that this is a high-level summary, though, take into account that generally energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Condor Energies currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

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 key aspects 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.