Symbotic Inc. (NASDAQ:SYM): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Symbotic Inc.'s (NASDAQ:SYM) future prospects. Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The US$16b market-cap company’s loss lessened since it announced a US$24m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, as it approaches breakeven. Many investors are wondering about the rate at which Symbotic 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.

View 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$152m in 2025. Therefore, the company is expected to breakeven just over a year from today. 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. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Symbotic's upcoming projects, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Symbotic currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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:

There are key fundamentals of Symbotic 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 Symbotic, take a look at Symbotic's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

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.