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We feel now is a pretty good time to analyse Fastned B.V.'s (AMS:FAST) business as it appears the company may be on the cusp of a considerable accomplishment. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. The €404m market-cap company posted a loss in its most recent financial year of €19m and a latest trailing-twelve-month loss of €20m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Fastned B.V's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Fastned B.V
Consensus from 9 of the Dutch Specialty Retail analysts is that Fastned B.V is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of €7.1m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Fastned B.V given that this is a high-level summary, but, keep 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. Fastned B.V currently has a debt-to-equity ratio of 154%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Fastned B.V, so if you are interested in understanding the company at a deeper level, take a look at Fastned B.V's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
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Historical Track Record: What has Fastned B.V'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 Fastned B.V'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.