Loss-Making MicroVision, Inc. (NASDAQ:MVIS) Expected To Breakeven In The Medium-Term
With the business potentially at an important milestone, we thought we'd take a closer look at MicroVision, Inc.'s (NASDAQ:MVIS) future prospects. MicroVision, Inc. develops and sells lidar sensors used in automotive safety and autonomous driving applications. The company’s loss has recently broadened since it announced a US$53m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$59m, moving it further away from breakeven. The most pressing concern for investors is MicroVision's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for MicroVision
According to some industry analysts covering MicroVision, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$48m in 2025. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 50% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of MicroVision's upcoming projects, 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. MicroVision currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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:
There are too many aspects of MicroVision to cover in one brief article, but the key fundamentals for the company can all be found in one place – MicroVision's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Historical Track Record: What has MicroVision'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 MicroVision'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.
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