In This Article:
Hesai Group (NASDAQ:HSAI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR). The US$1.4b market-cap company posted a loss in its most recent financial year of CN¥747m and a latest trailing-twelve-month loss of CN¥804m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Hesai Group'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 Hesai Group
Consensus from 5 of the American Auto Components analysts is that Hesai Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥475m in 2025. 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% year-on-year, on average, which is rather optimistic! 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 Hesai Group's upcoming projects, though, take into account that generally 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. The company has managed its capital judiciously, with debt making up 5.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Hesai Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hesai Group's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
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Valuation: What is Hesai Group 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 Hesai Group 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 Hesai Group’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.