Energy Vault Holdings, Inc. (NYSE:NRGV): When Will It Breakeven?

We feel now is a pretty good time to analyse Energy Vault Holdings, Inc.'s (NYSE:NRGV) business as it appears the company may be on the cusp of a considerable accomplishment. Energy Vault Holdings, Inc. develops and sells energy storage solutions. With the latest financial year loss of US$78m and a trailing-twelve-month loss of US$109m, the US$347m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Energy Vault Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Energy Vault Holdings

According to the 6 industry analysts covering Energy Vault Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$45m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 84% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Energy Vault Holdings' growth isn’t the focus of this broad overview, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Energy Vault Holdings has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 Energy Vault Holdings 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 Energy Vault Holdings, take a look at Energy Vault 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 Energy Vault 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 Energy Vault 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 Energy Vault 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.