When Will Fastned B.V. (AMS:FAST) Turn A Profit?

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. constructs and operates charging stations for electric vehicles in the Netherlands, Germany, and internationally. The company’s loss has recently broadened since it announced a €12m loss in the full financial year, compared to the latest trailing-twelve-month loss of €12m, 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. 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 Fastned B.V

Fastned B.V is bordering on breakeven, according to some Dutch Electric Utilities analysts. They expect the company to post a final loss in 2022, before turning a profit of €13m in 2023. So, the company is predicted to breakeven approximately 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 Fastned B.V given that this is a high-level summary, but, keep in mind that generally 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 Fastned B.V is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Fastned B.V to cover in one brief article, but the key fundamentals for the company can all be found in one place – Fastned B.V's company page on Simply Wall St. We've also put together a list of essential 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. 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.
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