Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Zapp Electric Vehicles Group Limited's (NASDAQ:ZAPP) business as it appears the company may be on the cusp of a considerable accomplishment. Zapp Electric Vehicles Group Limited, together with its subsidiaries, designs, manufactures, and sells electric vehicles under the Zapp brand. The US$4.1m market-cap company announced a latest loss of US$9.0m on 30 September 2024 for its most recent financial year result. Many investors are wondering about the rate at which Zapp Electric Vehicles Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 2 industry analysts covering Zapp Electric Vehicles Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$15m in 2026. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which is rather optimistic! 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 Zapp Electric Vehicles Group'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.

View our latest analysis for Zapp Electric Vehicles Group

One thing we would like to bring into light with Zapp Electric Vehicles Group is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Zapp Electric Vehicles Group 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 Zapp Electric Vehicles Group, take a look at Zapp Electric Vehicles Group's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Zapp Electric Vehicles Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Zapp Electric Vehicles Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Zapp Electric Vehicles Group’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.