Analysts Expect Breakeven For Aspen Aerogels, Inc. (NYSE:ASPN) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Aspen Aerogels, Inc.'s (NYSE:ASPN) future prospects. Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. The US$557m market-cap company’s loss lessened since it announced a US$83m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$71m, as it approaches breakeven. Many investors are wondering about the rate at which Aspen Aerogels 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.

See our latest analysis for Aspen Aerogels

Consensus from 9 of the American Chemicals analysts is that Aspen Aerogels is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$56m in 2025. So, the company is predicted to breakeven approximately 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 67% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Aspen Aerogels' growth isn’t the focus of this broad overview, however, bear in mind that generally 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. The company has managed its capital judiciously, with debt making up 26% of equity. This means that it 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:

There are too many aspects of Aspen Aerogels to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aspen Aerogels' company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Historical Track Record: What has Aspen Aerogels' 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 Aspen Aerogels' 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.