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Hyzon Motors Inc. (NASDAQ:HYZN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hyzon Motors Inc., a hydrogen mobility company, provides decarbonized solutions for commercial vehicles market and hydrogen supply infrastructure. The US$917m market-cap company posted a loss in its most recent financial year of US$14m and a latest trailing-twelve-month loss of US$14m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Hyzon Motors' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Hyzon Motors is bordering on breakeven, according to the 6 American Machinery analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$160m in 2024. 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 77% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Hyzon Motors' growth isn’t the focus of this broad overview, but, take into account 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 Hyzon Motors has no debt on its balance sheet, which is quite unusual for a cash-burning 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.
There are too many aspects of Hyzon Motors to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hyzon Motors' company page on Simply Wall St. We've also put together a list of important aspects you should look at:
Valuation: What is Hyzon Motors 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 Hyzon Motors is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hyzon Motors’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.
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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.