ADS-TEC Energy PLC (NASDAQ:ADSE) On The Verge Of Breaking Even

ADS-TEC Energy PLC (NASDAQ:ADSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ADS-TEC Energy PLC engages in the provision of intelligent and decentralized energy storage systems in Europe and North America. The US$622m market-cap company posted a loss in its most recent financial year of €98m and a latest trailing-twelve-month loss of €68m shrinking the gap between loss and breakeven. As path to profitability is the topic on ADS-TEC Energy'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.

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ADS-TEC Energy is bordering on breakeven, according to some American Electrical analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of €17m in 2025. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 156%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving ADS-TEC Energy's growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for ADS-TEC Energy

One thing we would like to bring into light with ADS-TEC Energy 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of ADS-TEC Energy 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 ADS-TEC Energy, take a look at ADS-TEC Energy's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Historical Track Record: What has ADS-TEC Energy'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 ADS-TEC Energy'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.