We Might See A Profit From FREYR Battery, Inc. (NYSE:FREY) Soon

We feel now is a pretty good time to analyse FREYR Battery, Inc.'s (NYSE:FREY) business as it appears the company may be on the cusp of a considerable accomplishment. FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company’s loss has recently broadened since it announced a US$72m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$107m, moving it further away from breakeven. As path to profitability is the topic on FREYR Battery's investors mind, we've decided to gauge market sentiment. 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 FREYR Battery

Expectations from some of the American Electrical analysts is that FREYR Battery is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$19m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving FREYR Battery's growth isn’t the focus of this broad overview, but, 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.

One thing we’d like to point out is that FREYR Battery 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of FREYR Battery 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 FREYR Battery, take a look at FREYR Battery's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has FREYR Battery'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 FREYR Battery'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.