Modiv Industrial, Inc. (NYSE:MDV) About To Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Modiv Industrial, Inc.'s (NYSE:MDV) future prospects. Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The US$157m market-cap company posted a loss in its most recent financial year of US$10m and a latest trailing-twelve-month loss of US$2.8m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Modiv Industrial will turn a profit, with the big question being “when will the company breakeven?” 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 Modiv Industrial

Consensus from 3 of the American REITs analysts is that Modiv Industrial is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$2.7m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 69% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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Given this is a high-level overview, we won’t go into details of Modiv Industrial's upcoming projects, 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.

Before we wrap up, there’s one issue worth mentioning. Modiv Industrial currently has a debt-to-equity ratio of 122%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Modiv Industrial 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 Modiv Industrial, take a look at Modiv Industrial's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is Modiv Industrial 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 Modiv Industrial 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 Modiv Industrial’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.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com