When Can We Expect A Profit From The ExOne Company (NASDAQ:XONE)?

The ExOne Company’s (NASDAQ:XONE): The ExOne Company develops, manufactures, and markets three-dimensional (3D) printing machines, 3D printed and other products, materials, and services primarily in North America, Europe, and Asia. On 31 December 2018, the US$145m market-cap posted a loss of -US$12.7m for its most recent financial year. The most pressing concern for investors is XONE’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for XONE’s growth and when analysts expect the company to become profitable.

View our latest analysis for ExOne

XONE is bordering on breakeven, according to the 2 Machinery analysts. They expect the company to post a final loss in 2019, before turning a profit of US$6.6m in 2020. Therefore, XONE is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which XONE must grow year-on-year. It turns out an average annual growth rate of 125% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGS:XONE Past and Future Earnings, April 9th 2019
NasdaqGS:XONE Past and Future Earnings, April 9th 2019

I’m not going to go through company-specific developments for XONE given that this is a high-level summary, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before I wrap up, there’s one aspect worth mentioning. XONE has managed its capital prudently, with debt making up 2.4% of equity. This means that XONE 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:

This article is not intended to be a comprehensive analysis on XONE, so if you are interested in understanding the company at a deeper level, take a look at XONE’s company page on Simply Wall St. I’ve also put together a list of essential factors you should further examine:

  1. Historical Track Record: What has XONE’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 ExOne’s board and the CEO’s back ground.
  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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.