Forsee Power Société anonyme (EPA:FORSE): Is Breakeven Near?

Forsee Power Société anonyme (EPA:FORSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Forsee Power Société anonyme, together with its subsidiaries, engages in the design, manufactures, and integration of battery systems for electromobility in France, res of Europe, Asia, the United States, and internationally. On 31 December 2023, the €64m market-cap company posted a loss of €28m for its most recent financial year. As path to profitability is the topic on Forsee Power Société anonyme's investors mind, we've decided to gauge market sentiment. 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 Forsee Power Société anonyme

Forsee Power Société anonyme is bordering on breakeven, according to the 2 French Machinery analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €2.8m in 2026. The company is therefore projected to breakeven around 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 70%, 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 Forsee Power Société anonyme given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Forsee Power Société anonyme is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Forsee Power Société anonyme's case is 83%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Forsee Power Société anonyme 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 Forsee Power Société anonyme, take a look at Forsee Power Société anonyme's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Historical Track Record: What has Forsee Power Société anonyme'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Forsee Power Société anonyme's 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.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com