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We feel now is a pretty good time to analyse Pioneer Power Solutions, Inc.'s (NASDAQ:PPSI) business as it appears the company may be on the cusp of a considerable accomplishment. Pioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally. The company’s loss has recently broadened since it announced a US$2.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$6.0m, moving it further away from breakeven. The most pressing concern for investors is Pioneer Power Solutions' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Pioneer Power Solutions

Pioneer Power Solutions is bordering on breakeven, according to some American Electrical analysts. They expect the company to post a final loss in 2023, before turning a profit of US$2.0m in 2024. So, the company is predicted to breakeven approximately 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 60%, which is rather optimistic! 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 Pioneer Power Solutions given that this is a high-level summary, however, 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. Pioneer Power Solutions currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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:

This article is not intended to be a comprehensive analysis on Pioneer Power Solutions, so if you are interested in understanding the company at a deeper level, take a look at Pioneer Power Solutions' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Historical Track Record: What has Pioneer Power Solutions' 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pioneer Power Solutions' board and the CEO’s background.

3. 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.