When Will Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Breakeven?
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Eos Energy Enterprises, Inc. designs, manufactures, and deploys battery storage solutions for utility, commercial and industrial, and renewable energy markets in the United States. The company’s loss has recently broadened since it announced a US$69m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$129m, moving it further away from breakeven. As path to profitability is the topic on Eos Energy Enterprises' 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.
Check out our latest analysis for Eos Energy Enterprises
Consensus from 5 of the American Electrical analysts is that Eos Energy Enterprises is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$1.2m in 2023. The company is therefore projected to breakeven around 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 77%, 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.
Given this is a high-level overview, we won’t go into details of Eos Energy Enterprises' upcoming projects, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 29% 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 too many aspects of Eos Energy Enterprises to cover in one brief article, but the key fundamentals for the company can all be found in one place – Eos Energy Enterprises' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Eos Energy Enterprises 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 Eos Energy Enterprises 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 Eos Energy Enterprises’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.
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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