Pineapple Energy Inc. (NASDAQ:PEGY): When Will It Breakeven?
We feel now is a pretty good time to analyse Pineapple Energy Inc.'s (NASDAQ:PEGY) business as it appears the company may be on the cusp of a considerable accomplishment. Pineapple Holdings, Inc. provides photovoltaic solar energy systems to residential homeowners in the United States. The US$19m market-cap company posted a loss in its most recent financial year of US$6.2m and a latest trailing-twelve-month loss of US$4.5m shrinking the gap between loss and breakeven. The most pressing concern for investors is Pineapple Energy'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.
See our latest analysis for Pineapple Energy
Pineapple Energy is bordering on breakeven, according to the 2 American Electrical analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.6m in 2024. The company is therefore projected to breakeven just over a year from today. 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 91%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Pineapple Energy's upcoming projects, but, keep in mind that typically 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 4.2% 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:
There are key fundamentals of Pineapple Energy 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 Pineapple Energy, take a look at Pineapple Energy's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Valuation: What is Pineapple Energy 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 Pineapple Energy 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 Pineapple Energy’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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