When Will Virgin Orbit Holdings, Inc. (NASDAQ:VORB) Become Profitable?

Simply Wall St
·3 min read

Virgin Orbit Holdings, Inc. (NASDAQ:VORB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Virgin Orbit Holdings, Inc. operates as a responsive launch and space solutions company worldwide. With the latest financial year loss of US$118m and a trailing-twelve-month loss of US$100m, the US$2.9b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Virgin Orbit Holdings' 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.

View our latest analysis for Virgin Orbit Holdings

Virgin Orbit Holdings is bordering on breakeven, according to some American Aerospace & Defense analysts. They expect the company to post a final loss in 2023, before turning a profit of US$84m in 2024. 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 56%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Virgin Orbit Holdings' growth isn’t the focus of this broad overview, however, keep in mind that typically 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. Virgin Orbit Holdings currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Virgin Orbit Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Virgin Orbit Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

  1. Valuation: What is Virgin Orbit 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 Virgin Orbit Holdings is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Virgin Orbit Holdings’s board and the CEO’s background.

  3. 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.