Yahoo Finance Arbe Robotics Ltd. (NASDAQ:ARBE): Are Analysts Optimistic?
Arbe Robotics Ltd. (NASDAQ:ARBE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. The US$163m market-cap company announced a latest loss of US$44m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Arbe Robotics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Arbe Robotics
Consensus from 5 of the American Electronic analysts is that Arbe Robotics is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$3.9m in 2026. So, the company is predicted to breakeven approximately 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 40% 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.
We're not going to go through company-specific developments for Arbe Robotics given that this is a high-level summary, however, take into account that typically 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 Arbe Robotics has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Arbe Robotics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Arbe Robotics, take a look at Arbe Robotics' company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Historical Track Record: What has Arbe Robotics' 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Arbe Robotics' 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.
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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.
