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Energy Vault Holdings, Inc. (NYSE:NRGV) Could Be Less Than A Year Away From Profitability

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We feel now is a pretty good time to analyse Energy Vault Holdings, Inc.'s (NYSE:NRGV) business as it appears the company may be on the cusp of a considerable accomplishment. Energy Vault Holdings, Inc. develops and sells energy storage solutions. On 31 December 2021, the US$1.8b market-cap company posted a loss of US$31m for its most recent financial year. As path to profitability is the topic on Energy Vault Holdings' 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.

View our latest analysis for Energy Vault Holdings

Energy Vault Holdings is bordering on breakeven, according to the 4 American Electrical analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$12m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 76% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Energy Vault Holdings given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Energy Vault Holdings currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Energy Vault Holdings, so if you are interested in understanding the company at a deeper level, take a look at Energy Vault Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

  1. Valuation: What is Energy Vault Holdings 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 Energy Vault Holdings 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 Energy Vault Holdings’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.