Engineering & Capital Goods News

Loss-Making FTC Solar, Inc. (NASDAQ:FTCI) Expected To Breakeven In The Medium-Term


With the business potentially at an important milestone, we thought we’d take a closer look at FTC Solar, Inc.’s (NASDAQ:FTCI) future prospects. FTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. The US$247m market-cap company posted a loss in its most recent financial year of US$107m and a latest trailing-twelve-month loss of US$103m shrinking the gap between loss and breakeven. The most pressing concern for investors is FTC Solar’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.

Our analysis indicates that FTCI is potentially undervalued!

FTC Solar is bordering on breakeven, according to the 8 American Electrical analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$16m in 2024. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 89% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqGM:FTCI Earnings Per Share Growth December 8th 2022

Given this is a high-level overview, we won’t go into details of FTC Solar’s upcoming projects, though, bear in mind that typically 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 aspect worth mentioning. FTC Solar 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of FTC Solar 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 FTC Solar, take a look at FTC Solar’s company page on Simply Wall St. We’ve also put together a list of pertinent factors you should further examine:

  1. Valuation: What is FTC Solar 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 FTC Solar 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 FTC Solar’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.

Valuation is complex, but we’re helping make it simple.

Find out whether FTC Solar is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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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