Haffner Energy SA (EPA:ALHAF): When Will It Breakeven?


With the business potentially at an important milestone, we thought we’d take a closer look at Haffner Energy SA’s (EPA:ALHAF) future prospects. Haffner Energy SA designs and builds HYNOCA, a carbon negative solution for producing renewable hydrogen in France. The €320m market-cap company posted a loss in its most recent financial year of €3.0m and a latest trailing-twelve-month loss of €3.4m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Haffner Energy’s path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Haffner Energy

According to the 2 industry analysts covering Haffner Energy, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €3.2m in 2024. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 74%, 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.

ENXTPA: ALHAF Earnings Per Share Growth July 5th 2022

We’re not going to go through company-specific developments for Haffner Energy given that this is a high-level summary, though, bear in mind that generally 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.

Before we wrap up, there’s one issue worth mentioning. Haffner Energy currently has a 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 Haffner Energy, so if you are interested in understanding the company at a deeper level, take a look at Haffner Energy’s company page on Simply Wall St. We’ve also compiled a list of important factors you should further research:

  1. Historical Track Record: What has Haffner Energy’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Haffner 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.

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.

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