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With the business potentially at an important milestone, we thought we'd take a closer look at Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) future prospects. Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility, commercial and industrial, and microgrid markets in the United States. The US$347m market-cap company posted a loss in its most recent financial year of US$230m and a latest trailing-twelve-month loss of US$331m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Eos Energy Enterprises' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Eos Energy Enterprises
According to the 7 industry analysts covering Eos Energy Enterprises, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$37m in 2025. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 80%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Eos Energy Enterprises' growth isn’t the focus of this broad overview, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Eos Energy Enterprises is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Eos Energy Enterprises, so if you are interested in understanding the company at a deeper level, take a look at Eos Energy Enterprises' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
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Valuation: What is Eos Energy Enterprises 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 Eos Energy Enterprises is currently mispriced by the market.
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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 Eos Energy Enterprises’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.