Stock Analysis

Market Sentiment Around Loss-Making Gogoro Inc. (NASDAQ:GGR)

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We feel now is a pretty good time to analyse Gogoro Inc.'s (NASDAQ:GGR) business as it appears the company may be on the cusp of a considerable accomplishment. Gogoro Inc. manufactures two-wheeled electric vehicle. The US$852m market-cap company announced a latest loss of US$99m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Gogoro'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 Gogoro

Consensus from 3 of the American Auto analysts is that Gogoro is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$20m in 2025. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 55% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGS:GGR Earnings Per Share Growth March 18th 2023

Given this is a high-level overview, we won’t go into details of Gogoro's upcoming projects, however, take into account that by and large 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 Gogoro is its debt-to-equity ratio of 143%. Generally, the rule of thumb is 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 Gogoro, so if you are interested in understanding the company at a deeper level, take a look at Gogoro's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

  1. Historical Track Record: What has Gogoro'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 Gogoro'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.

What are the risks and opportunities for Gogoro?

Gogoro Inc. manufactures two-wheeled electric vehicle.

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  • Earnings are forecast to grow 55.43% per year

  • Revenue grew by 4.6% over the past year


  • Volatile share price over the past 3 months

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