Modiv Industrial, Inc. (NYSE:MDV) Could Be Less Than A Year Away From Profitability

Modiv Industrial, Inc. (NYSE:MDV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The US$163m market-cap company’s loss lessened since it announced a US$10m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$584k, as it approaches breakeven. The most pressing concern for investors is Modiv Industrial'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.

See our latest analysis for Modiv Industrial

Modiv Industrial is bordering on breakeven, according to the 2 American REITs analysts. They expect the company to post a final loss in 2024, before turning a profit of US$18k in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of -71% is expected,

Underlying developments driving Modiv Industrial's growth isn’t the focus of this broad overview, however, keep in mind that typically a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Modiv Industrial is its debt-to-equity ratio of 132%. 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 around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Modiv Industrial 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 Modiv Industrial 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 Modiv Industrial’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.