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FTC Solar, Inc. (NASDAQ:FTCI): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at FTC Solar, Inc.'s (NASDAQ:FTCI) future prospects. FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. With the latest financial year loss of US$50m and a trailing-twelve-month loss of US$47m, the US$59m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is FTC Solar's path to profitability – when will it breakeven? 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 FTC Solar

According to the 7 industry analysts covering FTC Solar, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$7.7m in 2026. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for FTC Solar given that this is a high-level summary, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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Before we wrap up, there’s one aspect worth mentioning. FTC Solar currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of FTC Solar to cover in one brief article, but the key fundamentals for the company can all be found in one place – FTC Solar's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

  1. Historical Track Record: What has FTC Solar'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 FTC Solar'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.