Beam Global (NASDAQ:BEEM): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Beam Global's (NASDAQ:BEEM) future prospects. Beam Global, together with its subsidiary, invents, designs, engineers, manufactures, and sells solar powered products and proprietary technology solutions in the United States and internationally. With the latest financial year loss of US$3.9m and a trailing-twelve-month loss of US$4.3m, the US$336m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Beam Global will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Beam Global

Beam Global is bordering on breakeven, according to the 4 American Electrical analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$2.7m in 2022. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 63% is expected, 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 Beam Global's growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.3% of equity. This means that it 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 too many aspects of Beam Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – Beam Global's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Valuation: What is Beam Global 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 Beam Global 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 Beam Global’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. 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.
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