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When Can We Expect A Profit From FTC Solar, Inc. (NASDAQ:FTCI)?

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$235m 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? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for FTC Solar

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$15m in 2024. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Underlying developments driving FTC Solar's growth isn’t the focus of this broad overview, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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Before we wrap up, there’s one aspect worth mentioning. FTC Solar currently has no debt on its balance sheet, which is rare for a loss-making 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:

This article is not intended to be a comprehensive analysis on FTC Solar, so if you are interested in understanding the company at a deeper level, take a look at FTC Solar's company page on Simply Wall St. We've also compiled a list of essential aspects 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.

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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