Fastned B.V. (AMS:FAST): When Will It Breakeven?

Fastned B.V. (AMS:FAST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. The company’s loss has recently broadened since it announced a €19m loss in the full financial year, compared to the latest trailing-twelve-month loss of €20m, moving it further away from breakeven. As path to profitability is the topic on Fastned B.V'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 Fastned B.V

Fastned B.V is bordering on breakeven, according to the 9 Dutch Specialty Retail analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €7.1m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 60% is expected, which is extremely buoyant. 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 Fastned B.V's upcoming projects, but, 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 issue worth mentioning. Fastned B.V currently has a debt-to-equity ratio of 154%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around 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 pertinent aspects you should further examine:

1. 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.
2. 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.
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.