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With the business potentially at an important milestone, we thought we'd take a closer look at Invinity Energy Systems plc's (LON:IES) future prospects. Invinity Energy Systems plc produces and sells vanadium flow batteries (VFB) and related hardware for energy storage market in Asia, Australia, Europe, and North America. The UK£93m market-cap company announced a latest loss of UK£23m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Invinity Energy Systems will turn a profit, with the big question being “when will the company breakeven?” 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 Invinity Energy Systems
Consensus from 4 of the British Electrical analysts is that Invinity Energy Systems is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of UK£10m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. 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 75%, 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 Invinity Energy Systems' 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. Invinity Energy Systems currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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:
There are key fundamentals of Invinity Energy Systems 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 Invinity Energy Systems, take a look at Invinity Energy Systems' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
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Historical Track Record: What has Invinity Energy Systems' 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 Invinity Energy Systems' 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.