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We feel now is a pretty good time to analyse Beam Global's (NASDAQ:BEEM) business as it appears the company may be on the cusp of a considerable accomplishment. Beam Global, together with its subsidiary, invents, designs, engineers, manufactures, and sells solar powered products and proprietary technology solutions in the United States and internationally. The company’s loss has recently broadened since it announced a US$3.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$4.3m, moving it further away from breakeven. The most pressing concern for investors is Beam Global's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 3 of the American Electrical analysts is that Beam Global is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$3.2m in 2022. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Beam Global's growth isn’t the focus of this broad overview, though, bear in mind that by and large 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 The company has managed its capital prudently, with debt making up 2.3% 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.
This article is not intended to be a comprehensive analysis on Beam Global, so if you are interested in understanding the company at a deeper level, take a look at Beam Global's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Historical Track Record: What has Beam Global'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Beam Global's board and the CEO’s background.
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.
This article by Simply Wall St is general in nature. 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.
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