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We feel now is a pretty good time to analyse FREYR Battery, Inc.'s (NYSE:FREY) business as it appears the company may be on the cusp of a considerable accomplishment. FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company’s loss has recently broadened since it announced a US$72m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$107m, moving it further away from breakeven. As path to profitability is the topic on FREYR Battery's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for FREYR Battery
FREYR Battery is bordering on breakeven, according to some American Electrical analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$19m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 112% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving FREYR Battery's growth isn’t the focus of this broad overview, but, take into account 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. FREYR Battery 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 FREYR Battery, so if you are interested in understanding the company at a deeper level, take a look at FREYR Battery's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
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Historical Track Record: What has FREYR Battery'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 FREYR Battery'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.
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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.