Arcimoto, Inc.'s (NASDAQ:FUV): Arcimoto, Inc. designs, develops, manufactures, and sells three-wheeled electric vehicles. The company’s loss has recently broadened since it announced a -US$3.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$9.0m, moving it further away from breakeven. As path to profitability is the topic on FUV’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for FUV, its year of breakeven and its implied growth rate.
View our latest analysis for Arcimoto
According to the 3 industry analysts covering FUV, the consensus is breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of US$4.7m in 2020. FUV is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which FUV must grow year-on-year. It turns out an average annual growth rate of 50% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, FUV may become profitable much later than analysts predict.
Underlying developments driving FUV’s growth isn’t the focus of this broad overview, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that FUV has managed its capital prudently, with debt making up 22% of equity. This means that FUV has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of FUV which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at FUV, take a look at FUV’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:
- Historical Track Record: What has FUV'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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Arcimoto’s board and the CEO’s back ground.
- 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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