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ADS-TEC Energy PLC (NASDAQ:ADSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ADS-TEC Energy PLC engages in the provision of intelligent and decentralized energy storage systems in Europe and North America. The US$630m market-cap company announced a latest loss of €55m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which ADS-TEC Energy 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.
View our latest analysis for ADS-TEC Energy
ADS-TEC Energy is bordering on breakeven, according to the 3 American Electrical analysts. They expect the company to post a final loss in 2024, before turning a profit of €4.5m in 2025. So, the company is predicted to breakeven just over a year 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 111% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of ADS-TEC Energy's upcoming projects, but, 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 issue worth mentioning. ADS-TEC Energy currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in ADS-TEC Energy's case is 41%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of ADS-TEC Energy to cover in one brief article, but the key fundamentals for the company can all be found in one place – ADS-TEC Energy's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
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Historical Track Record: What has ADS-TEC Energy's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ADS-TEC Energy's board and the CEO’s background.
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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.