With the business potentially at an important milestone, we thought we'd take a closer look at TPI Composites, Inc.'s (NASDAQ:TPIC) future prospects. TPI Composites, Inc. manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs). The company’s loss has recently broadened since it announced a US$166m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$174m, moving it further away from breakeven. The most pressing concern for investors is TPI Composites' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 14 industry analysts covering TPI Composites, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$33m in 2024. 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 78% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of TPI Composites' upcoming projects, however, take into account that by and large 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 15% 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.
There are key fundamentals of TPI Composites 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 TPI Composites, take a look at TPI Composites' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Valuation: What is TPI Composites 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 TPI Composites is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TPI Composites’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.
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