Wallbox N.V.'s (NYSE:WBX) Path To Profitability

Wallbox N.V. (NYSE:WBX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Wallbox N.V., a technology company, designs, manufactures, and distributes charging solutions for residential, business, and public applications in Europe, the Middle East, Asia, North America, and the Asia Pacific. The US$71m market-cap company’s loss lessened since it announced a €149m loss in the full financial year, compared to the latest trailing-twelve-month loss of €125m, as it approaches breakeven. The most pressing concern for investors is Wallbox's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Consensus from 2 of the American Electrical analysts is that Wallbox is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of €16m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which signals high confidence from analysts. 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 Wallbox's upcoming projects, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Wallbox

Before we wrap up, there’s one issue worth mentioning. Wallbox currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Wallbox 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 Wallbox, take a look at Wallbox's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Historical Track Record: What has Wallbox'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 Wallbox'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.