Market Sentiment Around Loss-Making Symbotic Inc. (NASDAQ:SYM)

Symbotic Inc. (NASDAQ:SYM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The US$23b market-cap company posted a loss in its most recent financial year of US$24m and a latest trailing-twelve-month loss of US$19m shrinking the gap between loss and breakeven. As path to profitability is the topic on Symbotic's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Symbotic

Consensus from 16 of the American Machinery analysts is that Symbotic is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$223m in 2025. So, the company is predicted 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 116% year-on-year, on average, 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 Symbotic given that this is a high-level summary, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Symbotic has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Symbotic, so if you are interested in understanding the company at a deeper level, take a look at Symbotic's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is Symbotic 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 Symbotic 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 Symbotic’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.