The ExOne Company's (NASDAQ:XONE): The ExOne Company develops, manufactures, and markets three-dimensional (3D) printing machines, 3D printed and other products, materials, and services primarily in North America, Europe, and Asia. On 31 December 2018, the US$142m market-cap posted a loss of -US$12.7m for its most recent financial year. As path to profitability is the topic on XONE’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for XONE.
Consensus from the 2 Machinery analysts is XONE is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$6.6m in 2020. Therefore, XONE is expected to breakeven roughly a few months from now. What rate will XONE have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 125%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of XONE’s upcoming projects, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that XONE has managed its capital judiciously, with debt making up 2.4% of equity. This means that XONE has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of XONE which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at XONE, take a look at XONE’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further examine:
- Historical Track Record: What has XONE'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 ExOne’s board and the CEO’s back ground.
- 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.