Ondas Holdings Inc. (NASDAQ:ONDS) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Ondas Holdings Inc.'s (NASDAQ:ONDS) future prospects. Ondas Holdings Inc. designs, develops, manufactures, sells, and supports FullMAX software defined radio (SDR) platform in the United States and internationally. On 31 December 2020, the US$173m market-cap company posted a loss of US$13m for its most recent financial year. As path to profitability is the topic on Ondas Holdings' 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 Ondas Holdings
According to the 2 industry analysts covering Ondas Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$5.5m in 2022. 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 95%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Ondas Holdings' growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Ondas Holdings is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Ondas Holdings' case is 52%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Ondas Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Ondas Holdings' company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Valuation: What is Ondas Holdings 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 Ondas Holdings 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 Ondas Holdings’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. 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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