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.
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