Flux Power Holdings, Inc. (NASDAQ:FLUX): When Will It Breakeven?

Flux Power Holdings, Inc. (NASDAQ:FLUX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Flux Power Holdings, Inc., through its subsidiary, designs, develops, manufactures, and sells lithium-ion energy storage solutions in North America. The US$28m market-cap company’s loss lessened since it announced a US$8.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.7m, as it approaches breakeven. As path to profitability is the topic on Flux Power Holdings' 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.

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Flux Power Holdings is bordering on breakeven, according to the 4 American Electrical analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$4.1m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 58%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Flux Power Holdings given that this is a high-level summary, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Flux Power Holdings

Before we wrap up, there’s one issue worth mentioning. Flux Power Holdings 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 too many aspects of Flux Power Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Flux Power Holdings' company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is Flux Power Holdings 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 Flux Power Holdings 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 Flux Power Holdings’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.