When Will ADS-TEC Energy PLC (NASDAQ:ADSE) Turn A Profit?

We feel now is a pretty good time to analyse ADS-TEC Energy PLC's (NASDAQ:ADSE) business as it appears the company may be on the cusp of a considerable accomplishment. ADS-TEC Energy PLC engages in the provision of intelligent and decentralized energy storage systems in Europe and North America. With the latest financial year loss of €55m and a trailing-twelve-month loss of €71m, the US$656m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which ADS-TEC Energy will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for ADS-TEC Energy

Consensus from 3 of the American Electrical analysts is that ADS-TEC Energy is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €6.1m in 2025. Therefore, the company is expected to breakeven just over a year 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 120%, 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 ADS-TEC Energy given that this is a high-level summary, but, take into account that typically 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 ADS-TEC Energy 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 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 factors you should further examine:

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.