Yahoo Finance Ebusco Holding N.V. (AMS:EBUS) Is Expected To Breakeven In The Near Future
Ebusco Holding N.V. (AMS:EBUS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Ebusco Holding N.V., together with its subsidiaries, develops, manufactures, and distributes zero emission buses, batteries, and charging systems in the Netherlands, Belgium, France, Germany, Norway, Switzerland, and Denmark. On 31 December 2023, the €218m market-cap company posted a loss of €119m for its most recent financial year. As path to profitability is the topic on Ebusco Holding's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Ebusco Holding
Consensus from 4 of the Dutch Machinery analysts is that Ebusco Holding is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €34m in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, 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.
Underlying developments driving Ebusco Holding's growth isn’t the focus of this broad overview, however, bear in mind that generally 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 The company has managed its capital prudently, with debt making up 19% 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:
This article is not intended to be a comprehensive analysis on Ebusco Holding, so if you are interested in understanding the company at a deeper level, take a look at Ebusco Holding's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Historical Track Record: What has Ebusco Holding'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ebusco Holding'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.
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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.
