With the business potentially at an important milestone, we thought we'd take a closer look at Tritium DCFC Limited's (NASDAQ:DCFC) future prospects. Tritium DCFC Limited designs, manufactures, and supplies direct current chargers for electric vehicles in the United States, North America, Europe, the Middle East, and the Asia Pacific. The US$830m market-cap company announced a latest loss of US$63m on 30 June 2021 for its most recent financial year result. Many investors are wondering about the rate at which Tritium DCFC will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Tritium DCFC is bordering on breakeven, according to the 4 American Electrical analysts. They expect the company to post a final loss in 2022, before turning a profit of US$35m in 2023. So, the company is predicted to breakeven just over a year from today. 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 69% 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.
Underlying developments driving Tritium DCFC's growth isn’t the focus of this broad overview, however, bear in mind that typically 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 issue worth mentioning. Tritium DCFC currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are too many aspects of Tritium DCFC to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tritium DCFC's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
Valuation: What is Tritium DCFC 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 Tritium DCFC 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 Tritium DCFC’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.