Fastned B.V. (AMS:FAST): When Will It Breakeven?
We feel now is a pretty good time to analyse Fastned B.V.'s (AMS:FAST) business as it appears the company may be on the cusp of a considerable accomplishment. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. The €656m market-cap company announced a latest loss of €22m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Fastned B.V's investors mind, we've decided to gauge market sentiment. 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 Fastned B.V
According to the 6 industry analysts covering Fastned B.V, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of €13m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 55%, 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 Fastned B.V's growth isn’t the focus of this broad overview, however, bear in mind 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 issue worth mentioning. Fastned B.V currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Fastned B.V's case is 70%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Fastned B.V 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 Fastned B.V, take a look at Fastned B.V's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Historical Track Record: What has Fastned B.V'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 Fastned B.V'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.
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.
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